Make sure you can log into your mysql database with the command from a dos prompt:
After you hit enter it will ask for a password. If this works make sure your eqemu_config.xml file has the same user 'eq' and password you used here. Also make sure your database name is set correctly.
Your eqemu_config.xml file should look like this, with the appropriate changes of course.
Code:
<database>
<host>localhost</host>
<port>3306</port>
<username>eq</username>
<password>newpwd</password>
<db>peq</db>
</database>
pfyon is correct your credentials are messed up.