If I remember correctly this has something to do with the fact that mysql 4.4.1 uses a different password algorithm. You have to either change the passwords in mysql from the command line (this is how I fixed mine) or I think you can put 'old_passwords = 1' in my.cnf without the quotes (this way seems easier, but I'm not sure it works). Don't forget to restart mysql!
The problems are getting worse by the minute it seems....
After a complaint i´ve tried to reproduce what went wrong and yes: there is a MAJOR problem, here´s what i did:
Gat a fresh copy of Wordpress, installed it as instructed, after i was done, this error message appeared: "Error establishing a database connection". So this time i know i´m screwed.... please -any- assistance would be -very much- appreciated!
I don't think your problems got worse. You didn't use old_passwords=1, so your passwords aren't used correctly. Therefor wordpress can't connect to the database. Just use old_passwords and you should be fine. This has been mentioned on the forum a lot of times.