The eqclient.ini setting might be case sensitive - make sure it reads as Log=TRUE.
Try running EQ with administrative privileges - if it creates a log file after doing this then that means your Windows user account needs elevated permission to write to your C drive. That can easily be changed from an administrative user account, otherwise you'd just have to run EQ with administrative privileges from now on.
If configured correctly new log files for each character you sign in will be generated in your EverQuest\Logs folder.
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