I see a couple more potential mistakes:
Code:
<!--<address>Serving Machines IP</address>-->
<!--<localaddress>127.0.0.1</localaddress>-->
This only applies if you are trying to run your own server. I would uncomment both lines and place the actual ip in that first line (not loopback or 127.0.0.1).
Code:
<!-- Sets the shared key used by zone/launcher to connect to world -->
<key>some long random string</key>
These two lines do not exist at all in my config.
Code:
<+_+_+_>Your Password</password>
The first part of this should say 'password' not '+_+_+_' to be valid xml - the password should reside where it says 'Your Password'.
Question:
Are you trying to run your own server or connect to EQEMU's public server?