If you're going to upgrade, don't go from a Phenom I to another Phenom I. They were a disaster product from AMD from start to finish. Look at the Athlon IIs x3 or x4s in that price range if you need more CPU power.
To address your issue of RAIDs though, the problem is more in your HDD than the CPU. Everyone avatar has 7-11 different unique textures to load even if its just for a small little trinket on the avatar. 11 by 25 is 275 textures to pull off the HDD and load into the graphics. The HDD can't pre load all that data into its cache and has to pull it right from the platter to the GPU. So the drop in FPS is due to waiting for the HDD to spin around to the next piece of data it needs.
Options:
SSD. If all you do is WoW, a small boot drive with WoW on it will do very well and be around $100. You don't need the super powered second gen SSDs. Even the originals have much better access times than platter drives.
Faster HDD. While a 10k drive would be an improvement, you're in entry level SDD price range to get one. Or get a HDD with 500gb platters and short stroke it. I know that sounds dirty but it isn't. You are telling the drive to only use 1/3 of the platter at the outside edge so the heads have very little distance to travel and the data density out there on the edge of the platter is higher than the inner part.
While a new CPU should be in your long term plans, the HDD might provide better results for WoW.