Yep you can do all that.
Depending on your system you can run the emu server and the client on the same system. I have a 1Ghz system with 256MB and it works fine.
See my sig for a lot of referances and walkthrus. Basically you need the EQEmu binaries, mySQL, a database, and your EQ client software. Oh the patcher to get the correct version of the EQ executables to run the emu.
See
http://forums.eqemu.net/viewtopic.php?t=7942 for a good database and associated files, including the propper emu executables for it.
http://eqemu.net/index.php?patcher for the patcher. And
www.mysql.com for mysql.
Enjoy