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I get this same problem. It asks for user name / password and EQ live says it's invalid. However, I did get it to work one time, but I got the timeout error and went and updated the patch. Now I can't get back on.
eqhost.txt file is correct and read-only.
I don't even have an EQ live account any more, so this is a fresh install with patch.
It just doesn't want me to reconnect to the eqemu servers I guess =/
~Maleficarum
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