This could indicate that the connection speed has been set too high on the client. Typically, there is a lot of data to receive when moving around in crowded or graphically complex areas. If the client has a very high connection speed, it is more likely that packets will be dropped on its way to the client.
In some cases, users that have had this problem and were using a router, had a more stable game play after updating the router firmware. If you are using a router, try to temporarily disconnect your router and connect your computer directly to the internet (LAN/Modem).
You can also try changing the Connection speed under "Tools" in the bottom right corner of your Entropia Universe Client Loader. Even if you have ADSL or an even better connection, try setting the lowest connection speed to check if that improves your situation. If this resolves your issue, you may try to increase the setting step by step, to see which connection speed works best for your system.
You could also try disabling the sound under "Tools" in the bottom right corner of your Entropia Universe Client Loader to see if this improves your situation.