hmmmm. If you're just trying to play locally on your PC, you'll need to change LoginServer and Longinserver2 values to
localhost
instead of the eqemu servers
Other then that, it seems to be okay, but I'm a little tired right now and may have missed something.
-------EDIT---------
oops. That change should be made in your LoginServer.ini file
There's that tired thing again.
You may also want to mask your password when posting your db.ini file. Just replace the word with *****