Hmm.... my eqemulogin.ini doesn't have the "loginserver=localhost" line.
Worth a shot to try removing it? Can always just put it back if that doesn't work. Also, if that doesn't work, try changing it to eq.toadville.org since that's what your eqemu_config.xml says.
As well, I have "localhost" under "host" here:
Code:
<!-- Database configuration, replaces db.ini. Defaults shown -->
<database>
<host>eqdb</host>
<port>3306</port>
<username>[removed]</username>
<password>[removed]</password>
<db>PEQ</db>
</database>
Try making that eq.toadville.org as well... or localhost (not sure which).
Also, try every combination of these things just for kicks
Edit: I also edited out your DB user and password