I'm in the same spot as u are now.
Unable to do heroics due to bad gear, but normal instances are not really a challenge.
My plan is this : do daily's for a while, gather the gold to buy 4x titansteel mace ( the spell dmg one ), and run ToC to get my guys geared up to do heroics.
U can also do pvp until u get a few decent items. Leveling up professions so u can craft stuff is also an option, but that takes alot of time and gold to get it where u need it to be.
I will now continue questing in icecrown to get gear upgrades, getting revered/ exalted with factions so i can purchace better quality items.
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