From Blizzard's Official World Dungeons site:
...During the Third War, the wizards of the Kirin Tor battled against the undead armies of the Scourge. When the wizards of Dalaran died in battle, they would rise soon after - adding their former might to the growing Scourge. Frustrated by their lack of progress (and against the advice of his peers) the Archmage, Arugal elected to summon extra-dimensional entities to bolster Dalaran's diminishing ranks. Arugal's summoning brought the ravenous worgen into the world of Azeroth. The feral wolf-men slaughtered not only the Scourge, but quickly turned on the wizards themselves. The worgen sieged the keep of the noble, Baron Silverlaine. Situated above the tiny hamlet of Pyrewood, the keep quickly fell into shadow and ruin. Driven mad with guilt, Arugal adopted the worgen as his children and retreated to the newly dubbed 'Shadowfang Keep'. It's said he still resides there, protected by his massive pet, Fenrus - and haunted by the vengeful ghost of Baron Silverlaine...
Shadowfang Keep is a haunted keep in Silverpine Forest, near Pyrewood Village. It is the base of operations for the evil archmage Arugal and his worgen progeny.
As announced at Blizzcon 2009, Shadowfang Keep will get a Heroic mode in the new expansion of Cataclysm, giving players of level 85 an extra challenge. Unlike previous dungeons that were simply tuned to maximum levels for the Heroic version, Shadowfang Keep will also be totally revamped with a new layout, new bosses etc.
Currently, this zone is the first challenging instance that players will likely encounter. Not only are there more mobs than previous instances, but several of them also cast curses and nearly every Worgen has some kid of special ability that will affect a group's ability to deal with them. Not only that but the undead make use of Silence, which can cause consternation to tanks and healers alike.
For its level range, the loot here is really good, with more than a few bind on pickup blue items found here for Mages and Warriors.
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