Check the logs folder in your eqemu folder. There should be some error logs that might help. Also, I think you will need to remove the <-- and --> tags so that your address and local address look like this.
<address>192.168.1.50</address>
<localaddress>127.0.0.1</localaddress>
I doubt that will fix the problem you are having but you'll need to do it eventually. Post the error logs if they aren't clueing you in on anything.