The circling weirding out might be due to all instances running from the same Data dir, I don't know if wow does any locking on those files to prevent concurrent writes, but I can easily imagine this being a problem, especially if it's not using any locking mechanism. Anyway, if you start the launcher, shouldn't it start downloading all game data that you haven't received yet? Or have they removed that function?
On a side not, as far as I know the disconnect-from-item-link-bug was due to the item not being in the server-side cache yet, your local client-side cache has nothing to do with it.
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