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Well, shit. My friend tried for 4 hours last night to beat that damn chocobo race. After he left I tried bypassing my receiver and going straight into my TV to see if that improved things. No dice on the race or lightning dodging. This morning I tried on my bedroom TV in game mode and dodged 122 bolts before I screwed up, and then I nailed the chocobo race in 10 minutes. Got the chocobo master from the temple race about 20 minutes later.

I think this proves my theory that TV delay really blows for this game.