Well, it's really self explaining : there's a problem while etablishing the connection with mysql.
Check that part of your eqemu config file, make it reflect your actual mysql configuration (you set the password after mysql install and the DBNAME is the name of your database : peq, ax_peq or whatever your sourced).
<database>
<host>localhost</host>
<port>3306</port>
<username>root</username>
<password>Your Password</password>
<db>DBNAME</db>
</database>
PS : In fact you should read the mysql section of that howto, it's better than my crappy english.
http://www.eqemulator.net/wiki/wikka...ka=ws992mysql5