In your original post, at the bottome under the databse information in the eqemu_config.xml file, the <port>3306</port> is right next to the <host> line.
If this is the same way that it appears in your xml file, I dont know if its the probelm, but <port> should be in a line of its own right below it. Like this (excerpt from my config file)
Code:
<!-- Database configuration, replaces db.ini. -->
<database>
<host>127.0.0.1</host>
<port>3306</port>
<username>root</username>
<password>Mypassword</password>
<db>ax_classic</db>
</database>
Also, what guide did you follow to set up your server. Try to follow the guide in my signature. It's simpler than having multiple Mysql accounts and its pretty much bug free now. Had serveral people get going on first try with it.