You need to use the launcher play button once and a while to update the files for the server you select - apparently this is where you are having an issue. So your issue is not how to use the launcher to launch on red and blue servers, it is how to use the launcher at all.
In order for the launcher to do its job, you have to have permissions set on the Everquest directory so that the launcher can modify files. Does the launcher have adequate permissions for the /Program Files/Sony/Everquest directory?
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