I have found, and verified by my FC, that the dungeon instances are almost unplayable. 8~ second lag, teleporting players, random freezes and disconnects. The world and the raid instances are not effected by this. This is also time sensitive, this happens during heavy use periods of the game and the off hours (3am central) things seem to calm down. One thing I did notice that during the lag bursts my receiving was 1200 to 2500 but my sending was 0. Chat was still working for all players during these problems, except when we got kicked offline. This seems to be due to heavy overuse of specific dungeons as before the patch AV was unplayable but other dungeons were fine. The dungeons I have tried are all of the high level dungeons where people are grinding their tombstones. Are the dungeon instance servers running out of network connectivity or CPU? If this is the case, a temporary work around would be to use a virtual server system similar to Amazon's E2C to get as much cpu and bandwidth as you need till a workable solution can be done on your systems.

You have a wonderful game, I came from Warcraft to play this game and I have been enjoying it fully. Not being able to participate in the new dungeon content due to issues such as this though significantly detracts from the game. Please jump on this as hard as you jumped on the 1.X problems!