You can read more about the Latency hiding in our Friday Facts: http://www.factorio.com/blog/post/fff-83
Very short multiplayer gameplay example with extreme latency setting of 1.5 seconds. Left screen is using latency hiding so the response is immediate for many actions. Right one shows the real state viewed by the second player.
On this page of the site you can watch the video online Multiplayer Latency Hiding Preview with a duration of hours minute second in good quality, which was uploaded by the user Factorio 24 April 2015, share the link with friends and acquaintances, this video has already been watched 33,497 times on youtube and it was liked by 258 viewers. Enjoy your viewing!