Long way from the exchange, troubleshooting help p...

Hi there, I'm hoping some of you good people can help me understand what's going on with my internet connection. I am afraid I am not technical at all, so please bear with me!
I live 7.9 kilometres from our local exchange up a little twisty valley, so have always been resigned to it not being the best broadband connection. However, I play a MMO, and recently have experienced quite a lot of lag / latency, so started to troubleshoot. I posted a couple of traceroutes to the offending ISP on the gaming forum and several folk suggested that my hops on the BT side looked extremely high. My second hop can get up to 1.8 seconds! However it only appears to be like that when I am actually logged on in game. If I do a traceroute to the server without being in game it comes out as lower.
I have done a Quiet Line test as suggested and it's pretty hummy / crackly. I often have to ask people to speak up when making calls.
I suppose what I'm after is an understanding of what's going on here - and if there is anything I can do to get BT to improve it? Last time I called to complain about a slow connection the chap on the Helpdesk suggested I was being throttled and he did something to change it but given I found out after the call that my husband had merrily left podcasts downloading on a PC I didn't know was on and that was what used up the bandwidth I don't really have much confidence in what I was told!
Here's my ADSL stats:
Line state
Connected
Connection time
3 days, 18:10:37
Downstream
1,280 Kbps
Upstream
448 Kbps
ADSL settings
VPI/VCI
0/38
Type
PPPoA
Modulation
ITU-T G.992.1
Latency type
Interleaved
Noise margin (Down/Up)
6.4 dB / 11.0 dB
Line attenuation (Down/Up)
63.5 dB / 31.5 dB
Output power (Down/Up)
16.2 dBm / 12.3 dBm
Loss of Framing (Local)
0
Loss of Signal (Local)
0
Loss of Power (Local)
0
FEC Errors (Down/Up)
624473 / 480
CRC Errors (Down/Up)
7128 / N/A
HEC Errors (Down/Up)
N/A / 236
Error Seconds (Local)
5316
Here's my BT Speedchecker stats
Download speed 0.96
Upload speed 0.35
ping 61.5
Download speedachieved during the test was - 0.98 Mbps
 For your connection, the acceptable range of speeds is 0.2 Mbps-1 Mbps.
 Additional Information:
 Your DSL Connection Rate :1.28 Mbps(DOWN-STREAM), 0.45 Mbps(UP-STREAM)
 IP Profile for your line is - 1 Mbps
Traceroute to the offending gaming server during a period of high latency in game:
Tracing route to 74.201.106.23 over a maximum of 30 hops
  1    82 ms    77 ms    98 ms  BThomehub.home []
  2  1727 ms  1471 ms  1382 ms  217.47.109.186
  3  1940 ms  2188 ms  2366 ms  217.47.109.161
  4   459 ms   556 ms   668 ms  213.1.69.230
  5  2382 ms  2600 ms  1795 ms  213.120.162.69
  6  2039 ms  2290 ms  2337 ms  31.55.165.109
  7  2555 ms  2566 ms  2440 ms  acc2-xe-4-1-2.mr.21cn-ipp.bt.net [109.159.250.240]
  8   509 ms   517 ms   516 ms  core1-te0-13-0-0.ilford.ukcore.bt.net [109.159.250.137]
  9   564 ms   587 ms   581 ms  peer2-xe-4-2-0.telehouse.ukcore.bt.net [109.159.252.49]
10   618 ms   661 ms   668 ms  t2c3-xe-2-1-2-0.uk-lon1.eu.bt.net [166.49.211.192]
11   706 ms   703 ms   716 ms  195.66.224.130
12   906 ms   933 ms   916 ms  vb1042.rar3.nyc-ny.us.xo.net [207.88.13.202]
13  1008 ms  1031 ms  1012 ms  ae0d0.mcr1.cambridge-ma.us.xo.net [216.156.0.26]
14  1049 ms  1059 ms  1055 ms  ae1d0.mcr2.cambridge-ma.us.xo.net [216.156.1.14]
15  1121 ms  1103 ms  1108 ms  209.117.103.10
16  1204 ms  1247 ms  1232 ms  border1.te8-1-bbnet2.bsn003.pnap.net [63.251.128.107]
17  1282 ms  1284 ms  1321 ms  turbine-7.border1.bsn003.pnap.net [64.95.76.202]
18  1368 ms  1363 ms  1374 ms  74.201.102.170
19     *        *        *     Request timed out.
Traceroute to the gaming server when running OK in game and logged in to gaming server
1    31 ms    97 ms   104 ms  BThomehub.home []
  2  1819 ms  1803 ms  1780 ms  217.47.109.186
  3    40 ms    43 ms    43 ms  217.47.109.161
  4   398 ms   424 ms    43 ms  213.1.69.230
  5   510 ms   242 ms    46 ms  213.120.162.69
  6   509 ms   158 ms    41 ms  31.55.165.109
  7   502 ms   313 ms    43 ms  acc2-xe-4-1-2.mr.21cn-ipp.bt.net [109.159.250.240]
  8   214 ms    59 ms    55 ms  core1-te0-3-0-13.ilford.ukcore.bt.net [109.159.250.152]
  9   135 ms    64 ms    61 ms  peer2-xe-4-2-0.telehouse.ukcore.bt.net [109.159.252.49]
10    50 ms    53 ms    48 ms  t2c3-xe-2-1-2-0.uk-lon1.eu.bt.net [166.49.211.192]
11   276 ms    53 ms    52 ms  195.66.224.130
12   597 ms   144 ms   138 ms  vb1042.rar3.nyc-ny.us.xo.net [207.88.13.202]
13   144 ms   143 ms   680 ms  ae0d0.mcr1.cambridge-ma.us.xo.net [216.156.0.26]
14   615 ms   326 ms   128 ms  ae1d0.mcr2.cambridge-ma.us.xo.net [216.156.1.14]
15   179 ms   134 ms   131 ms  209.117.103.10
16   450 ms   131 ms   130 ms  border1.te8-1-bbnet2.bsn003.pnap.net [63.251.128.107]
17   506 ms   261 ms   144 ms  turbine-7.border1.bsn003.pnap.net [64.95.76.202]
18   557 ms   142 ms   141 ms  74.201.102.170
19     *        *        *     Request timed out.
20     *        *        *     Request timed out.
Traceroute to bbc.co.uk for contrast
Microsoft Windows [Version 6.1.7600]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.
C:\Users\LisaLaptop>tracert bbc.co.uk
Tracing route to bbc.co.uk [212.58.244.18]
over a maximum of 30 hops:
1 34 ms 99 ms 99 ms BThomehub.home [192.168.1.254]
2 46 ms 40 ms 40 ms 217.47.109.186
3 40 ms 40 ms 39 ms 217.47.109.161
4 120 ms 132 ms 74 ms 213.1.69.230
5 77 ms 41 ms 41 ms 213.120.162.69
6 140 ms 143 ms 121 ms 31.55.165.109
7 38 ms 39 ms 39 ms acc2.10GigE-7-2-0.mr.21cn-ipp.bt.net [109.159.25
0.224]
8 55 ms 63 ms 49 ms core2-te0-12-0-4.ealing.ukcore.bt.net [109.159.2
50.135]
9 45 ms 61 ms 47 ms peer2-xe-4-2-0.telehouse.ukcore.bt.net [109.159.
252.49]
10 102 ms 83 ms 84 ms 194.74.65.42
11 * * * Request timed out.
12 * * * Request timed out.
13 58 ms 53 ms 48 ms ae0.er01.telhc.bbc.co.uk [132.185.254.109]
14 48 ms 48 ms 47 ms 132.185.255.149
15 138 ms 156 ms 168 ms fmt-vip72.telhc.bbc.co.uk [212.58.244.18]
Trace complete.
C:\Users\LisaLaptop>
Traceroute to gaming server without being logged in
Microsoft Windows [Version 6.1.7600]
Copyright (c) 2009 Microsoft Corporation. All rights reserved.
C:\Users\LisaLaptop>tracert 74.201.106.23
Tracing route to 74.201.106.23 over a maximum of 30 hops
1 66 ms 106 ms 80 ms BThomehub.home [192.168.1.254]
2 538 ms 282 ms 48 ms 217.47.109.186
3 44 ms 39 ms 39 ms 217.47.109.161
4 58 ms 84 ms 84 ms 213.1.69.230
5 193 ms 40 ms 41 ms 213.120.162.69
6 682 ms 140 ms 53 ms 31.55.165.109
7 40 ms 474 ms 421 ms acc2-xe-4-1-2.mr.21cn-ipp.bt.net [109.159.250.24
0]
8 473 ms 306 ms 57 ms core1-te0-3-0-13.ilford.ukcore.bt.net [109.159.2
50.152]
9 273 ms 49 ms 49 ms peer2-xe-4-2-0.telehouse.ukcore.bt.net [109.159.
252.49]
10 145 ms 52 ms 68 ms t2c3-xe-2-1-2-0.uk-lon1.eu.bt.net [166.49.211.19
2]
11 292 ms 51 ms 70 ms 195.66.224.130
12 623 ms 125 ms 126 ms vb1042.rar3.nyc-ny.us.xo.net [207.88.13.202]
13 253 ms 129 ms 139 ms ae0d0.mcr1.cambridge-ma.us.xo.net [216.156.0.26]
14 126 ms 127 ms 126 ms ae1d0.mcr2.cambridge-ma.us.xo.net [216.156.1.14]
15 144 ms 142 ms 144 ms 209.117.103.10
16 776 ms 708 ms 238 ms border1.te8-1-bbnet2.bsn003.pnap.net [63.251.128
.107]
17 137 ms 125 ms 598 ms turbine-7.border1.bsn003.pnap.net [64.95.76.202]
18 140 ms 141 ms 590 ms 74.201.102.170
19 * * * Request timed out.
20 * * * Request timed out.
21
Hope you can help!

Opps, sorry, I mean 7.9 kilometres. OP corrected. Still, based on the kitz speed calc giving an estimated line of 4.6 km it's a decent line, right? (http://www.kitz.co.uk/adsl/max_speed_calc.php is what I mean).
I've put a call in to 151 - the guy at the call centre couldn't find a fault but I have an engineer coming on Wednesday to check it anyway as it shouldn't hum and crackle as badly as it does. In the course of that he got me to take off the front plate of the master socket and there isn't a test socket at the back, just a pile of wires. It's an older master socket with the sockets in the middle, and there's two of them as historically the house had two phone lines, but one is not currently used.
The master socket is in a wildly inconvenient place for anything so we run using TP-links to send it through the wiring - the plugs are I think 500 mb and the boxes that talk to them (sorry, really not technical) are I think 1G. I appreciate this isn't ideal but the layout of the house and the thickness of the walls makes anything else impossible. The laptop I use for gaming is wired into one of these plugs.
How would I change the latency settings? I have a HomeHub 2 - is it something I do on that?

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