Well for one, you cant follow the guide as closely as possible. You need to follow it step by step and do exactly as it says.
Here is the step you missed,
Code:
SET PASSWORD for 'root'@'localhost' = OLD_PASSWORD('newpwd');
You will see this in the guide after the database setup. It is a MANDATORY step as it allows the emu to connect to the database using a password scheme similar to MySQL 4 which the emu is built upon.
If this does not work, double triple check your username and passwords in your mysql and in your eqemu_config.xml file.