It's hard to solve a problem when I can't duplicate it here. Try this;
eqhosts.txt:
change
Code:
[LoginServer]
Host=eqemulator.net:5998
to
Code:
[LoginServer]
Host=208.64.37.23:5998
If the eq client don't accept that , then go to your windows hosts file and make an entry;
Code:
208.64.37.23 eqemulator.net
What this will do is by-pass the DNS server and go straight to the LS, which will save you some MS, you may need.
I've always thought this is due to lag, as I've had this problem a while back when my connection was laggy.