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Is it against the EULA of Everquest to run and distribute an emulator program such as EQEmu?
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Yes and no.. It is against the EULA to USE an emulator, but you can distribute anything you want. <see below>
Is it Illegal?
NO.
The only thing that can happen is verant can ban/suspsend your EQLive account. But the only way this is going to happen is if you make a post that has a char name, servername, account name, ect along with a confession that you use EQEmu.. OR you brag/talk about EQemu while playing EQLive (because guides/GM's can read your chat).