Trouble connecting to database

I am receiving the message

This either means that the username and password information in your wp-config.php file is incorrect or we can’t contact the database server at 127.0.0.1. This could mean your host’s database server is down.

Are you sure you have the correct username and password?
Are you sure that you have typed the correct hostname?
Are you sure that the database server is running?

——————–

Here is whats in my setup file

define(‘DB_NAME’, ‘wpdb’);

/** MySQL database username */
define(‘DB_USER’, ‘wpadmin’);

/** MySQL database password */
define(‘DB_PASSWORD’, ‘Password’);

/** MySQL hostname */
define(‘DB_HOST’, ‘127.0.0.1’);

/** Database Charset to use in creating database tables. */
define(‘DB_CHARSET’, ‘utf8’);

/** The Database Collate type. Don’t change this if in doubt. */
define(‘DB_COLLATE’, ”);

———

I am running IIS 6 server 2003, mysql 5.
I have tried changing DB host to localhost and the server name VISIONSERVER. no luck

I have changed tried creating different databases and users to help with no luck. I have created the DB using my SA account, and created the users giving them full access to the DB. I can log on to mysql using the wpadmin account and access the DB with no issue.

does anyone have any ideas? I am flat out. All the google searches people seem to switch around the dbhost, but this does not work for me.

thanks