my mysql question

i just recently bought webspace with mysql included and have been trying to set up phpmyadmin on the server. i have successfully gotten to the "Welcome to phpmyadmin" screen, and am trying to install php nuke. the only problem is that under "create new database" it says no privileges with a red x.

obviously the first thing i thought was i somehow didnt configure the config.inc.php file correctly....so i double checked and everything SEEMS right (keep in mind this is the first time ive done this so who knows).

i also went to my mysql "Execute SQL Statement" box and typed in

"GRANT ALL PRIVILEGES ON *.* TO 'admin'@'localhost'"

but all that returns is

Access denied for user: 'dufftinium@localhost' (Using password: NO)

i have a control panel but i cant figure out how to get phpmyadmin to work with mysql. im trying to get it so i can install phpnuke and use it with the database....but no dice.

$cfg['Servers'][$i]['user']

$cfg['Servers'][$i]['password']

which user and password are supposed to go for these values and where do i find them? i know it should be straight forward but ive been working with so many of them lately im lost