Theres a couple errors there.
1. The loginport under the loginserver.ini needs to be 5999
2. Need :5999 at the end of your localhost in the EqHost.txt file.
Here is my post on how i set it up,
http://www.eqemulator.net/forums/viewtopic.php?t=12406
There contains my whole set up if your running under dial up and want a personal server that needs no hook up to the net. Since its all local, no one we be there to say hello so use at your own risk. I will not be held accountable for loss of EQ social skills in this matter!