Basically what arch said. Except I nuked the folder by moving it to my desktop and then kept one and only one file Gather.lua, I use that for herbing/mining.
Reason I moved the folder instead of deleting it was, that I wanted to keep a few items from it for example macros, and few savedvariables. I have simply moved these back to the new WTF folder afterwards.
WTF folder contains all of your settings. Once you remove it, game becomes just like it was when you first installed it. All addons you have in your Interface/addons folder will create new .lua files and you will start with fresh SavedVariables folder and file. This is in essence house cleaning. I suspect that outdated .lua files were cause of the headache for me. I mean I have not cleaned that folder in a year, but in the meantime I have upgraded my mods a few times.
Outdated .lua files along with few other things have contributed to my problem. I will most likely reinstall operating system on my pc over the weekend. That in itself is about umm 1 day of work, considering all the apps, patches, games I need to reinstall not to mention I think my soundcard drivers are messed up. Audigy 2Z being recognized as Soundblaster 9000. Wth is that SB9K? Never even heard of it.