Comment out the address and localaddress as suggested by Vexyl, then put the real ip of the login server you are using in:
<!-- Loginserver information. DO NOT EDIT -->
<loginserver>
<host>
127.0.0.1</host>
<port>5998</port>
<account>XXXXXX</account>
<password>XXXXXX</password>
</loginserver>
change that to your ip of your actual login server, ie 192.168.1.85 or otherworld.myvnc.com, ie the same ip you set your clients eqhost info too..
that is if you are using your own login server...