For spells to work, your client spell file and the server database need to match. As far as I know, the standard peq database works fine with the default client spell file. If you've changed that file on your client then you'll have a problem unless you import it into your server database as well or restore the default client file.
If eqlaunch.exe isn't running it means you're missing some DLL files, most likely the Visual Studio 2005 runtime. You can download it here:
http://www.microsoft.com/download/en...s.aspx?id=3387
You can find out exactly what you are missing with the dependency walker program that you can download here:
http://www.dependencywalker.com/
An alternative is to install Visual Studio 2005 and use it to compile your own server files. There are guides on how to do this in the forums.