Getting friends to join my game- not working

[Domingodarkrage]

I'm attempting to make my eqemu server run off my lan and have friends connect from outside the lan. I'm running it on the same computer that i will be playing EQemu with. I have tried inserting my dydns and router ip into the addresses requested by the windows server startup guides, but none of it is working. My friends can ping my address- the router) but I am unable to ping my own router and establish a connection there (and thus with my server).

Am I missing something? I do not believe this is a port forwarding thing, and I've tried asking the computer to log into 192.168.0.1 as well.
What i have tried and the errors:

eqemu_config.xml:
<address>server.dyndns.org</address> (with my router info/dydns)
<localaddress>192.168.0.40</localaddress> (my comp is on 40)

<loginserver>
<host>server.dyndns.org</host> (my router/dydns here)
<port>5998</port>
<account></account>
<password></password>
</loginserver>

error reads: [debug] [world_LS_ERR] Not connected but not ready to connect, this is bad: (Router IP here):5998

-The "not ready to connect" is what has me the most worried.