I don't know if this is possible but is it possible to make the emulator also compatible with the client released today as well as the box set? Is it only the xml file that needs to be changed to get it compatible?

You mean the latest client on live? Yes, it is possible but I don't see any reason to do so. One of the reasons for stopping at this expansion was to prevent the wasted effort of playing catch up to live every few weeks. All that effort would be better spent improving the product to a more useful state.

Haha welcome to BetterQuest II!