[Phanx]

Blizzard's customer service people generally are limited to parroting the standard "delete Cache, Interface, and WTF" line and don't even know what that actually means, let alone understand any details about how the system works.

Are you removing just the server folder, or your whole account folder? If you're only removing the server folder, that is probably the issue; the game is detecting that your account has already logged in from this computer (since the account folder is already present), and just using the local settings for your account.

I actually don't use any of the sync settings, or even any of the game's settings storage at all; I have a custom addon that applies all of my settings, bindings, and macros at login regardless of what the game thinks are my current settings, and my entire AddOns folder is synced via Dropbox so I can just download it to any computer I happen to be playing from, or just access it to tinker with code while I'm at work.