PLEASE NOTE: EDITING THE REGISTRY CAN CAUSE SERIOUS SYSTEM PROBLEMS!Due to some "brilliant" choices by Blizzard's coders, latency can be artificially high, but this is a way around such. Please note this involves the registry and as such, you should be very careful to do exactly what's listed. This works for XP and Vista, haven't had a chance to test for 7.
1) Open a command prompt and type "ipconfig" to determine your IP address. Keep it in mind for later.
2) Run "regedit".
3) Navigate to this key: HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Tcpip\Parameters\Interfaces\
4) There will be a few subkeys, each representing a network device. You need to locate the one that contains a key value that has your IP address. This one will be your active network card.
5) In that folder, create a new DWORD value named TcpAckFrequency. Modify the newly created value, changing the Value data field to "1" (without the quotation marks).
6) Close regedit, and you can either restart Windows, or go to your Network Connections, select the active connection (typically Local Area Connection), and disable, then re-enable it. The goal is to reload the network card.
Another write up of this is...
International lag fix
WoW lags, it's not something new if you're playing on servers a bit far away from your country, but don't worry people are fixing it ! Out of all the methods offered to fix the lag on your machine, one of them posted on Elitistjerks forums seems to work very well.
<> <> <> Read this first <> <> <>
1 - It might have side effects, like slowing down your download speed or affecting your performance on other softwares. (In my case, it didn't change anything)
2 - If you're not sure about what you're doing, just don't do it. I don't want to be responsible because you crashed your computer in some way because you wasted your registry.
2.1 - Seriously, if you don't know what you're doing, don't do it. It will be fixed in one or two weeks anyway. (and the official fix won't have any impact on other softwares)
3 - If you don't have the HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSMQ\ directory, you can download and apply this file to your registry.
4 - Windows Vista users might want to check this post too.
Source - Elitistjerks.com
"1 - TcpAckFrequency - NOTE if you are running Windows Vista this setting may not have any effect - a hotfix is needed which i'm tracking down. This works fine under Windows XP
Type "regedit" in windows "run.." dialog to bring up registry menu
Then find:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Tcpip\Parameters\Interfaces\
There will be multiple NIC interfaces listed in there, find the one you use to connect to the internet, there will be several interfaces listed (they have long names like {7DBA6DCA-FFE8-4002-A28F-4D2B57AE8383}. Click each one, the right one will have lots of settings in it and you will see your machines IP address listed there somewhere. Right-click in the right hand pane and add a new DWORD value, name it TcpAckFrequency, then right click the entry and click Modify and assign a value of 1.
You can change it back to 2 (default) at a later stage if it affects your other TCP application performance. it tells windows how many TCP packets to wait before sending ACK. if the value is 1, windows will send ACK every time it receives a TCP package.
2 - TCPNoDelay
This one is pretty simple (Discussed here)
Type "regedit" in windows "run.." dialog to bring up registry menu
Then find:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSMQ\Parameters
Right-click in the right hand pane and add a new DWORD value, name it TCPNoDelay, then right click the entry and click Modify and assign a value of 1.
Click Ok and close the registry editor, then reboot your PC."
Basically, this fix is deactivating the Nagle algorithm to improve your ping. If you don't want to do it you can just wait for the 2.3.2 patch as it's supposed to deactivate it too, but I don't think you can test it on PTRs right now because the updated patch notes from the latest PTR Build (7705) are actually for the upcoming build (7710).
Source:
http://www.mmo-champion.com/news-2/new-spell-ranks-on-ptr-lag-fix-comics/?PHPSESSID=go30aa7g6unb595fffkj8qm0u7