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				 and the db I am using inside says  
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EQEmu 0.5.0 Database
			
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  Actually that is your problem. Go to the world building forum there are stickys that link to newer DB's for you to use.  You are trying to use a DB that is NOT compatible with the version of server you are using. 
[edit] Oh, and if you use MW DB it is more of a complete db (read, you dont have to source the dumpeditems.sql in)