I'm a little confused by your question, Scorps. "Huge lag" shouldn't have anything to do with your graphics settings or your FPS. If you can't dps because you have low fps, then your problem is your system not being fast and powerful enough to handle what's going on in the raids. The only thing that can be done about that problem is upgrading your rig. Nothing on blizzard's end would have any impact.
I'm sure that there are a ton of people hitting the naxx instance servers and hopefully the fixes they're putting in will help out with that, but that's an entirely different problem from FPS. Are you noticing particularly bad ping to the server or are you just not getting good response times on your actions?
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