I'm curious as to where you're getting that IP address from, because Blizzard's IPs are usually registered to them:
»whois.domaintools.com/206.18.98. ··· 8.98.188
and that IP address isn't:
»whois.domaintools.com/63.240.161 ··· .161.189
Can you log into wow fully, pull up a command prompt, and do
Find any connections on port 1119 or 3724.
For example, I see
TCP 192.168.1.2:62719 220.127.116.11:1119 ESTABLISHED
TCP 192.168.1.2:62720 18.104.22.168:3724 TIME_WAIT
TCP 192.168.1.2:62721 22.214.171.124:3724 ESTABLISHED
TCP 192.168.1.2:62723 126.96.36.199:3724 ESTABLISHED
Trace to any of the IPs which state ESTABLISHED (ignoring the 12.129.206.x IP as thats your connection to the login server in LA).
I'd also recommend running winMTR to the IP address you find, to find out what exactly is causing the 2000ms latency increase.--
Battle.net Tech Support MVP