I had this error yesterday trying to setup a new server. The way I fixed mine was to remove <!-- from before <address> and <localaddress> then also remove --> from after <address> and <localaddress>. So that section of your eqemu_config.xlm should look like this
<!-- Only specify these two if you really think you need to. -->
<address>127.0.0.1</address>
<localaddress>127.0.0.1</localaddress>
Hope that helps.