Mislim da je pametnije staviti noviju verziju al nema veze...
Kako si probao sa root nalogom?
Ovako nekako bi islo (logovanje i kreiranje baze moja) u cmd-u:
C:\Documents and Settings\Mister Rap.MISTER-M9HPLU75>mysql -u root -p
Enter password: ******
Welcome to the MySQL monitor. Commands end with ; or \g.
Your MySQL connection id is 12 to server version: 5.0.18-nt
Type 'help;' or '\h' for help. Type '\c' to clear the buffer.
mysql> create database moja;
Query OK, 1 row affected (0.02 sec)
mysql>
Javi u krajnjem koju ti gresku javlja!