Are you sure? That doesn’t make sense by the code to me.
If your local simulation is running at 'current time" then by definition you would NEVER be interpolating because, by definition, remote objects position is always arriving at a time LATER then when the move was made, which means the interpolation buffer is always talking about the past.
In order for them to be synchronized properly on your system, your system has to also be showing the past.
I’ll take a look at the article you pointed to.
Edit: As I thought…
“The trick to solve this problem is to go back in time for rendering, so positions and animations can be continuously interpolated between two recently received snapshot.”
You are never seeing the result of your current actions but rather those at a previous time. In the sample code, you send out your "current physics position’ to all participants, including yourself. You then set the displayed position of all objects at the point in time in the past equal to your latency buffering delay.
The latency buffering delay will always be there in your inputs. If its less then about 1/10th of a second its below human reaction time. Anything more then that can be felt by the user.
This is the reverse of dead reckoning, where rather then delaying your view into the past, you interpolate the view of others in to the future. LAtency buffering has the benefit of being more “correct” in that you don’t have to guess at the future, but has the disadvantage of introducing lag into the controls.
How much lag depends on how much worst-case latency you have to cover.
What Im trying to implement is a dead reckoning solution as I can handle lower precision in the results. Interestingly enough PhysX has support for this in that you can create a separate dead-reckoning “scene” and run it forward in time.
Unfortunately, once again, I seem to be stalled by the Unity API which hides all the direct PhysX calls 
This is an on going problem for me with Unity… that they have gone out of the way to make doing anything but the simpelst things difficult to impossible using their API
About the only solution I see is basically throwing out all of Unity’s physics and writing my own bindings that expose the PhysX level. Thats a lot of work, though, to cover what should be in their APi to begin with.