Sorry DDude11, I didn't realize the post above was there. Shoulda looked.
I don't see anything in the latest eqemu_config.xml that is wrong. I have these lines uncommented in mine but I don't think this has anything to do with your issue.
Code:
<!-- Only specify these two if you really think you need to. (read: You don't) -->
<!-- <address>192.168.1.100</address> -->
<!-- <localaddress>127.0.0.1</localaddress> -->
You said that you found another copy of the eqemu_config.xml file on your drive, is it possible that you have multiple world.exe files and for some reason one is located in your path and windows is trying that one?
I am at at a loss, can we see some more of the log file around the error?