Done so far
1. Edited my.cnf as required
ok, i believe, id love to see mytop anyway.
2. MySQL Query Cache is enabled and optimized for Magento
3. PHP Realpath cache increased
5. KeepAlives are enabled
no it’s not.
6. Gzip enabled
7. APC installed and used by magento
APC is not always a good choice ...
8. Set cache to RAM
reading the previous paragraph, isnt it already there?
9.Varnish page cache
It seems set up incorrectly.
i bet you messed up everything.
i can help you.