Alright first off its eqhost.txt not eqhost.exe.
Your first problem sounds like you are tring to connect to an uncompatible server. Since you patched to live you can only connect to DR6 servers. For the eqhost.txt file changing itself set it to
Code:
[LoginServer]
Host=eqemulator.net:5995
Make sure there are no spaces at the end of the lines and set the file to read only.