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If you don't want to touch the image quality, you can play around with harddrive performance tweaks (such as altering the page file, running a defrag), as mentioned earlier test to record onto different drives, and test setting different cpu affinitys on fraps and/or WoW.
Personally though when I'm recording, the things I care about the most is the framerate and resolution, so I tweak down my graphic settings as much as it goes and this includes forcing a v1.1 shader version and a bunch of graphic card(driver) tweaks like that which you can find by searching for guides on tweaking gfx settings for WoW.
Honestly, your computer specs arent really THAT good, so you shouldnt really expect more than that framerate while recording-
Are any of your harddrives in raid0? Something that might help is having a fast harddrive like a velociraptor or having harddrives in raid0 (or velociraptors in raid0 if you're a mad man)- although I havent done any benchmarks for this specifically so don't take my word for it (I just have a raptor drive and pleased with the results compared to my friends, but that includes a huge amount of factors so I wouldnt rely on it much).
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