Ok the client log should not be deleted while the client is still running. Go to C:\Users\[Your Username]\AppData\Local\LEGO Software\LEGO Universe\Log Files while the client is stuck at ‘Submitting Username’ and save the file somwhere else and upload it on pastebin.com.

To me it sounds like the client tries to connect to the char server and fails, so please go to config.ini in the debug folder and tell us the redirect_ip. Which IP address do you connect with your client? (AUTHSERVERIP in boot.cfg)