It also depends on what kinda of comp you got an your internet-connection. But this is the way I put my settings to get less lag:

Special effects : Enabled
Visual area : Lower
Shadow : No
Light : Basic
Display names : Depends on what you want :p
Display stats : Also your choice
Skill effects : Enabled (turn off when you're very laggy)
Fighting model : Disabled (turn on in wars and when around many people
Particle effects : Enabled
Brightness : Phase 6 (depends on what you want)