Along with the plumbing aspect, the most important key to reducing turbo lag is the size of the turbine (exhaust side of the turbo). Lag is never desireable, but sometimes you have to live with it if you want REALLY big HP numbers where you have to run high rpms. Otherwise, lag can be completely non-existant in a mild application.
A turbo's compressor has different efficiency levels at different flow rates and pressures. The trick is to get your to find a suitable match for how you want your engine to behave. Compressor maps (and knowing how to read them) are an invaluable tool in this aspect.
For a street engine, you can use a small turbine. This will minimize lag and get you up on boost quick. The downside is that by 5,000 rpms, you will be putting a lot of heat into the engine because you are out of the compressors efficency range. You will also be spinning the turbo at a very high rpm.
Race engines use larger turbines. You will typically have very little boost until 3000 rpms or even higher in order to have the compressor in a peak efficiency at 6,000+ rpms. That's where the big HP numbers develop. They often use tall gear ratios, hi-stall converters, trans-brakes, or even nitrous to overcome the lag and get the engine up on boost right after launch.
VATN (Variable Area Turbine Nozzle) turbocharges are on the market now as well. The A/R of the turbine changes with rpm and allows minimal lag, with impressive top end performance. In effect, the turbine gets bigger with rpm - stabilizing the turbine rpm and keeping the compressor in acceptable efficiency ranges.