Had this same problem editing the eqhost.txt that came from the sony patcher using copy and paste.
It is a problem with carriage returns and it not being read-only. Easy fix (if I explain it right; hehe): Put your cursor at the VERY beginning of 'Host=eqemulator.net:5995' and backspace it till it's right next to '[LoginServer]'. There should be no spaces between the 2 lines you have merged together. With your cursor still between [LoginServer] and Host=eqemulator.net:5995, Hit Enter and it'll move the 2nd line down. Now save eqhost.txt and edit it's properties and make it 'readonly'. If you don't make it readonly gargabe gets added to it when you try to logon.
So basically, you just want each line of your ehost.txt to have no blank spaces at the end of it
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