After searching, searching and searching, this is the only thing I have found that related to my problem. And it worked! Thanks.
I am using XP Pro/Sp2 (I had IIS5.1) Abyss Web Server, PHP 5.2.1, MySql 5 (both Came with Abyss). I still had the same problem with this setup as with ISS. “Error establishing a database connection” I use this server on my home computer for web development.
I fought this thing for two weeks. Somewhere there should be a notice in the downloads, etc., to Windows users about this. PHP was working fine for everything except WordPress. So even though it is a PHP.ini modification required, it is also a WordPress problem for Windows users. And as a plus, a logon script I was using that did not work is now working too.
Again Thank you!