Internet works perfectly apart from in games, (w/o firewall and connected to modem!)

could be interleaving on the line... that tends to produce high pings. Could ask them see wether its on or not!
 
I'm a bit confused by 'plugging the modem into the master socket', do you mean take off the face plate on the wall, and then there will be another different socket behind that, in which the modem could work properly?

It depends how your extensions are wired but yes, there is a socket behind the master socket's faceplate which should have no extensions wired into it.
 
could be interleaving on the line... that tends to produce high pings. Could ask them see wether its on or not!

I doubt if it would result in massive lag like OP has stated. At most, it increases your ping by about 30ms, and even then your connection remains rock solid (taking into consideration there are no other factors influencing it).
 
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