Adding in the Purge and the Counterspell to my spam made the difference for me on Paletress. Was so much easier once I did that.

Still have a lot of trouble with the Knight though. If I manage to get through phase 2, usually 1-3 of my toons are near death or dead. I can only squeek by if I get lucky. The two times I did win only my tank was left standing.

What I have been doing as soon as phase 2 starts:

Druid drops trees
Shaman drops fire elemental if its up
Tank uses consecrate, holy wrath? (aoe spell, forget the name) and argent defender
Everyone spams on Knight
Priest spams AOE heals and tank heals
Shaman casts thunderstorm when ghouls get to the party
Strafe as soon as knight dies (at least I try to)

Properly timed thunderstorm, healer not getting bolted in phase 2 and beat on and tank getting as many ghouls aggrod as possible seems to make the difference for me. Much more micromanagement than I am used to. I might not be spreading them out enough, but I worry that if I do I won't be able to strafe away from the explosions. Ah well, just have to keep at it until I get a strat that works for me.

Team - Pro Paladin, Ele Shaman, Bal Druid, Arcane Mage, Holy Priest