Nice! Here are a few more suggestions:
* In part 1 step 2, you assume that the user already has downloaded the files. While this is usually true (they are reading the README after all

), it may not be. You may want to have a section before the setting up mySQL database that is called getting the source that has steps for getting the two zip files and unzipping them.
* Steps 11 and 12 seem out of place in part 1. Perhaps move them to part 2?
* Step 6 in part 2 should read:
6) steps 2 and 3 will extract executables named "world.exe" and "zone.exe". This are precompiled executables for Windows and of no use to us. Feel free to delete them at your pleasure.
(actually, it should probably be an addendum to step 3)
* Step 7 in part 2 should read:
7) Steps 5 and 6 created executables called "world" and "zone" respectively. Move those executables into the base directory.
On a side note, this compile is really too complicated... I'm going to have to look into something like autoconf for this project...
* In part 3, step 2, go ahead and remove the accout= and password= lines from the LoginServer.ini example. They're not used by most people and tend to confuse the ini parser. Just have it have the four used fields.
* Step 4 in part 3 should be more like
4) Those 5 lines will create a total of 5 zones open on your machine, you can add more or remove if you choose to.
Also note that the "path/to/zone" should be replaced by the location of the zone executable you compiled in part 2. Usually, this will be just "./zone".
* In part 4, step 2, ./boot will not produce any output. It might be good to mention that the output from each instance of zone goes into one of the zoneX.log files.
* In part 5, step 1, isn't that already done? I usually just extract both zips into the same directory, so the cfg directory is already there...
Again, thanks for putting together this README file!