Cadiz: I have tested your settings, separately and the whole file, no success.
I have tried using the overwritten URL and no luck either.
I now get really washed out colours on the background and still get shadows instead of textures.
After trying to run EQ on VirtualBox and getting the same result, I think that the issue is caused by my ATi drivers. I am going to try going back to my old nvidia card and the onboard one to test.
I'll let you know.
If I can't get it working, I will try installing CentOS 6, which should work with the Fedora packages.
It's really annoying as I am a sysadmin by trade, but Wine is the one thing I have NEVER managed to get working properly.
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