So one of the reasons I skipped all of Deepholm to level is that the 'lag' was horrendous for me there and not in any other zones. After doing a little research and using my google-fu I came across this thread: http://us.battle.net/wow/en/forum/topic/1306103911
It seems that The SCII bug that was killing video cards have crossed over to WoW. After forcing Directx 11 I havent had the problem.