I am not sure if this a general bug or not. I am using the Server Repack to test it out and when I try to login in to the server from a different computer, it will hang at "Loading Zone Server" - I check the server and see it is Accepting the Client, but than "Removing the Client" which causes me to crash back to login. The server is LAN-Based and DMZ within the router, so nothing is being blocked.

Sorry if posted in the wrong spot. Feel free to move to correct forum.

Try setting the zone to that you are loading into to always start. You can do that by setting the 'always_loaded' column to 1 for the zone you want to always start when starting your world.
After you get in, can you please report back here if you can or cannot zone to other zones.

I tried the aobve method you posted, and tripled check to ensure it was not a mistake by me. The same issue had happend and now I may offer a better post since I watched as it happend.

I was logged into the server with the computer running the server. Worked perfect. Was able to login another computer next to it, and create a character just fine. when I logged in into my hometown (Set to Timorious Deep, as you said to set a start zone to 1) it hanged at "Connection to Zone Server" on the console window it said

"Client connected: Loading Char. successful!, Removing Client"

That is when than I get thrown back to login.

EDIT: I forgot to add both games are patched to the same date of Jul 2009, that is when my mom (Who owns the game) quit playing.