If it was a EQhost.txt problem it would of given a time out error
but he gets a bad user name or password.
Anyway if you just created the account i think you may have to wait a few days before it is entered into the master login info.
Also make sure that you dont have the caps key on or your shift key is not stuck.
Anyway I hope this helps.
One more thing are you playing on your server or a EQEMu server?