Extreme Lag when playing split screen PS3, auto save icon constantly displayed, even with auto save disabled.

If more than one player is playing (Spilt Screen) extreme lag is created. Most obvious when riding horses.

Some observations:
I have auto save disabled. But the "auto save chest" in the upper right corner of the screen seems to display constantly. With auto saved disabled I am not sure why it is running at all.

Besides horses causing the game to come to a crawl, when mining controls seem to start lagging. Player will turn on a delay, keep "mining" even after the controls have been released.