My guess is that the config file you are using is the one that ends in "xml.full". You need to remove the .full from there for it to work. Which also means you either have to delete the short version config file or rename it first.
You definitely have the account portion setup incorrectly somewhere, since it is reporting that it is trying to use eq as the login ID instead of root. You may want to just try configuring the short version of the config file. It has much less in it, but basically the same functionality.
If you are planning to setup a public server, I highly recommend that you change your mysql password ASAP. You don't want people hacking your database and ruining your server... I removed it from your first post of your config, but I see you have a screenshot with it as well. So, just change it.
Another thing you might want to know is that you should change this:
Code:
<defaultstatus>20</defaultstatus>
To this:
Code:
<defaultstatus>0</defaultstatus>
This is where you set the default account status for new players. Most server use 0 for default.
I am the one that moved your post on trying to setup Mini-Login to the mini-login section. That is what that section is there for. There are some pretty common issues when setting it up and the people that read that section often are more likely to be able to help out with mini-login problems.