Moon Guard is lagging hard

In the past 30 minutes or so, Moon Guard has started lagging more and more. I have spoken with several people there who claim, like me, that their latency and framerate are fine, and yet all sorts of issues are cropping up:

- Item transfer times have skyrocketed, both looting and mailing.

- Portals from one place to the next are taking 2-3 minutes now, rather than near-instant speed.

- People are lagging out when the random queue tries to place them in an instance, getting stuck outside the instance. The "teleport to instance" button does not work during this, and some folks are getting returned to their hearth location instead... myself, I was turning in Ogri'la dailies and ended up in Dalaran when the "teleport" feature malfunctioned.

- Once we get into instances, the lag continues both while looting, and in combat.

Myself and the other denizens of Moon Guard would appreciate anything you can do to fix this. We have dailies to do, heroics to run, raids to smash face in, and are all starting to go through WoW withdrawal after yesterday. We know that you are all busy folk right now, but any assistance would be great. :)