You need to take out the localaddress you put in. and add another line to your login.eqemulator.net section. It will look like this.
<loginserver1>
<host>192.168.1.x</host>
<port>5998</port>
<account>xxxxx</account>
<password>xxxx</password>
</loginserver1>
<loginserver2>
<host>login.eqemulator.net</host>
<port>5998</port>
<account></account>
<password></password>
</loginserver2>
After the recent updates ive had issues with people connecting to my server if I specified my local address. You can try it and see if that fixes it for you.