We were able to connect to the database server (which means your username and password is okay) but not able to select the wordpress database.
I would suspect that you have an error in the name of the database you are trying to connect to. Compare the actual name of the database you created for WordPress to what you have entered in the database name in the config file. It needs to be exact. Also, be sure you didn't accidentally remove a quotation mark. It should look like this:
 I just noticed this: "WordPress version: 2.2" That isn't really the version you're working with is it?