Simplified answers to your questions:
Q: My addon settings reset, what should I do?
A: Open folder: D(С):\Games\WoW3.3.5\WTF\Account\YOURLOGIN\, copy the folder with your realm name (for example WoW Circle 3.3.5a x100) to your desktop, rename it into the needed proxy (for example WoW Circle 3.3.5a x100 Prx 1), and move back to D(С):\Games\WoW3.3.5\WTF\Account\YOURLOGIN\ folder, launch the game.
Q: What's for?
A: Internet is not a local network, there is no direct connection between you and the server. The connection is established with the help of backbone providers and every transferred byte must be payed: some take more and provide qualitative service, some take less - but the service is worse.
Your route to server can contain tens of such nodes and even more. If a problem occurs on one of the nodes or someone cuts corners, delays, network lags, connection loss or high ping appear.
In this case nearly nothing depends on the customer (You) and server owner (Us): You buy internet connection from your provider, we - from our, it is rather difficult to influence something between them.
Q: How it will help?
A: In most cases you can bypass issue nodes just by moving to another region. This is what proxy does - they are geographically placed in advantageous traffic exchange spots and accept your connection and forward it to the main server.
Q: What should I do if your proxy does not help?
A: You can try software like this
https://forum.wowcircle.net/showthread.php?t=723916, and pick the most suitable proxy for you.
Автор ответов на 2 и 3 вопрос: loTEDve
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