Yes. When you overclock the E4600 make sure you check the stability of the overclock with 25 iterations of IntelBurnTest and at least a few hours of OCCT and Orthos.
Here is an HD4870 for £144 delivered from Novatech:
http://www.novatech.co.uk/novatech/s....html?SAP-4870
TBH I would first do the following:
1.) Overclock your CPU to 3ghz and check for stability
2.) Uninstall the old ATI drivers and CCC and use Driver Sweeper to remove any old driver fragments. Install the latest version of the drivers and CCC. The HD3870 has better performance with later drivers. For instance performance in Crysis was a bit buggy with the initial drivers but once the game was patched and the drivers were updated to later releases the gameplay was much smoother. If anything isn't WOW not meant to be that taxing on graphics cards?? I have run more graphically taxing games at 1680x1050 and the gameplay was smooth.
3.) Overclock the GPU core of the HD3870. It won't be hard to get upto at least 840mhz from 777mhz.
4.) Patch the game to the latest stable version
I did all of theses changes and it helped performance of my HD3870. Make sure that the slowdowns are just down to the card itself and not any other reasons. At least try doing this first as with the release of the HD4890 and GTX275 next month prices of the HD4870 and GTX260 will probaly start dropping a bit more!! :)
Also I noticed that you have a 160gb drive too!! Is this a 2mb or 8mb cache drive BTW and is it an older model?? If anything even with 4gb of RAM a slow hard drive can be a major system bottleneck especially when the game is trying to read data off the hard drive.