Since the client code for live servers and the test server is slightly different, you have to either (a) let the launcher patch in the differences each time you switch back and forth between "Live" and "Test" (in the launcher under "Advanced Tools > Select Game Version"), or (b) install a second copy of the client and launcher, and dedicate that to the Test environment. The latter is what most regular users of Test do. It is sufficient to copy the entire EverQuest directory to something with a similar name, create a shortcut for the second copy of the launcher, and then set that launcher's game version to "Test", at which point it will patch what it needs.
I get the feeling like some characters might have gotten erased or rolled back. Honestly don't understand why we had to do server merges in the first place. Things were fine as is.