My Husband and I are both having similar problems. We log in and select EU server and get through all the disclaimers and settings etc. We can see our characters and login but when you log out and try to return it goes back to North American Server.
I have watched what happens in my Elder Scrolls Folders and it now doesn't generate a liveeu folder anymore just generates a live folder.
We have tried to delete the folder so it generates new ones but again doesn't create a liveeu folder just recreates the live folder so that every time we login it tries to place us into the NA server.
I have also noticed that the client never updates to show EU it always states (NA), but when you log in its says our sever choice is LiveEu but doesn't log into that server defaults back to NA again.
We have both completed repairs too in case there has been a problem with the download, but no problems found
At the moment the game is completely un-playable for the both of us, and being a guild leader this is extremely frustrating!