Mac Write, I also used the MySQL package from:
http://www.entropy.ch/software/macosx/mysql/
and it worked like a charm. No problems at all. I followed the instructions line by line, installed the startup script and it runs like a champ.
I don't know if you've gotten your answer yet but I'd bet you still need to create the MySQL User:
Create a new user in the "Users" System Prefs pane:
Name: "MySQL User"
Short Name: "mysql"
Password: whatever you want
Hope this helps ...
Did you ever get it to work? I am trying at the moment but can't even compile GMAKE to make FreeTDS. I've searched and searched but haven't found a thing yet.