The EQNPC utility just reads in the data from eqspawns.txt in the input directory, and generates files containing the npc_types, spawn and npc_faction data in the output directory. It doesn't ask you for an input file or anything, just run it and it will generate the files (which takes a few seconds) and shut down.
To load the actual DB, unzip the .txt files into your mysql/bin directory, run mysql, then type "use eq" and "source reloaddb.sql", this will source in all the data. It will delete any existing NPC, faction, loot and merchant data (not items or zones/zonepoints) so back these up if you've got any custom data you want to keep.
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