Probably it's more a problem of your rig than the game settings.
As long as I see you are running server kind of CPUs and Ram. Probably your motherboard is also suited more for server usage rather than gaming.
After retiring my old video processing cluster I tested wow multibox performance with lots of possible rigs. Found that 800 MHz RAM makes a big difference for wow, same as the CPU. A Q9650 @3Ghz will perform much better than a quad xeon 5405 @ 2Ghz like the one you have. In fact, I tested it with practically the same rig as you except the GPU.
The motherboard makes the difference between a viable and unviable rig, at least it did in my case. A typical server motherboard will be unable to run properly when you land in dalaran unless you are sitting on some really expensive mobo. A gamer one would work ok in most of the cases. For example, the Dell server mobos I tried weren't unable to handle dalaran x 5. Tyan ones worked relatively ok, but I don't think a 1k euro mobo is acceptable for a gaming rig.
If you have an Asus Striker motherboard around, just try it and you will see the difference even maintaining all the rest of the rig components.
The problem with the motherboards is that even if your GPU is PCIE at 16X, if the motherboard cannot adress properly that speed then it will downgrade performance alot. Server oriented mobos are more kind to handle a 10 GBit nic or some RAID controller than an insane GPU.
Also make sure your PSU can give enough power to your GPU or it will start running in low performance mode. Most dells tend to come with crappy PSU.
As for raw GPU performance, the Asus ENGTX275 is beter than the BFG. I use both instead of the nvidia tesla processors and the asus one has about 15% faster forformance. Not sure if it affects wow, but I have an asus GPU on my gaming rig.
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