Sorry, should have clarified, only when they are in PIP. When I switch windows, the main window is always nice and clear.

I am using the HP DV7, i7-720QM, 8Gig Ram, Windows 7 64bit. No lag in Dalaran. I did notice since switching to ISBoxer that my FPS dropped a fair amount, was getting 30+ in Dal on main, now usually hovers around 20. But of course I'm assuming that is due to all WoW's being rendered in the same resolution. I can certainly live with 20FPS in Dal and 40+ everywhere else.