This occurs in online gaming when latency is relatively high. Players (or yourself) will appear to move in one direction, and then suddenly be teleported back several feet where they once were a few seconds ago.
This can be extremely annoying in twitch-based online games such as first person shooters, as it will hinder one's aiming and shooting. Rubberbanding also plagues MMOs, particularily in extremely filled servers with poor hardware configurations. While it isn't as damaging in an MMO environment, rubberbanding still takes away from the overall gaming experience and if at all possible, should be avoided.
CS-Sniper: WTF!!! server is rubberbanding pPLaYERS I cANT SHOOT SH*T... OMfg I JUST GOt HEADSHOTTED WTF OMG11!!!
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