I get this same error and it does not effect me logging in a playing on a local setup. That probably means the error is a coincidence and you just need to patch to the right level. I was in the same boat with not having a machine on the network. I ended up having to patch the eq directory on a machine with net access, then burn it to 3 CD's (2.05gb) and copy it over that way. May not be the easiest way to do it but it worked.
Hope you get it running
