That is definitely a multi-core issue, considering the symptoms. Is this a PC that you built yourself, or one that was built by a manufacturer? And have you verified what version of DirectX you are running? You should be able to click your start button and click "Run..." and then type in dxdiag in the box and click ok and it will load DXDiag and show you your DirectX version.
I would try stopping the program that is forcing you to run on a single core, because it obviously isn't helping. Then, maybe try running in different compatibility modes to see if any help.
Also, it is worth noting that I had built myself a PC about a year ago and got a CPU that was apparently not compatible with the motherboard I had bought to use with it (though the motherboard info showed that it should have been). I had very similar issues to the ones you are seeing and nothing I did could resolve it. Finally after I isolated that it had to be an issue with the hardware, I contacted the manufacturer of the motherboard to find that the CPU was recently added to the unsupported list for that motherboard. And, that was my problem the entire time (DAYS of troubleshooting wasted). Though, when I was having that particular problem, I noticed major performance issues in all games I tried to play, not just EQ.
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