You mentioned having an up to date graphics card and enough memory. This statement is ironic! Your videocard is seriously lacking and your RAM amount is just enough to make the game work. I have 768 MB of RAM in my PC and I still cringe when it chops in certain areas. My brother has 1 GB of RAM and it runs perfect. 1 GB seems to be the magic number for WoW.
If I were you, I'd put money towards a new motherboard and processor (processor needs upgrading also), a new videocard, and new RAM. The rest of your system is fine. I hate to be cynical, but there's no reason to upgrade your current system. The only possible upgrade that would be worth it is a $100 videocard and a lot more RAM. After that, your motherboard and processor will hold ya back.
So, if you don't want to upgrade the whole system, my recommendation is buying at least 512 MB of RAM (if your system will hold it). I'd also recommend upgrading to a Radeon 9600 Pro or GeForce FX 5600 Ultra, but only if you have at least 512 MB of RAM or more first. Upgrading your processor wouldn't do much in your situation.
-Lasereth
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"A Darwinian attacks his theory, seeking to find flaws. An ID believer defends his theory, seeking to conceal flaws." -Roger Ebert
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