[Derision]

You are missing a '>' sign after <database , i.e, highlighted in red below:

<?xml version="1.0">
<server>
        <world>
                <shortname>setme</shortname>
                <longname>I Forgot To Edit My Config</longname>
                <key>some long random string</key>

                <loginserver>
                       <host>eqemulator.net</host>
                       <port>5998</port>
                       <account>TestServerAccount</account>
                       <password></password>
                </loginserver>
        </world>
        <database>
                <host>localhost</host>
                <port>3306</port>
                <username>root</username>
                <password></password>
                <db>eqemu</db>
        </database>
</server>