Ok, I am trying to install bugzilla, but I am getting an error when I run ./checksetup.pl as apache

Enter the e-mail address of the administrator: bryan@loopadvertising.com
Enter the real name of the administrator: Bryan ONeal
Enter a password for the administrator account:
Please retype the password to verify: DBD::mysql::db do failed: Access denied for user 'bugs'@'localhost' to database 'bugs' at Bugzilla/DB/Mysql.pm line 209
        Bugzilla::DB::Mysql::bz_lock_tables('Bugzilla::DB::Mysql=HASH(0xb2d3bcc)', 'profiles WRITE', 'profiles_activity WRITE', 'user_group_map WRITE', 'email_setting WRITE', 'groups READ', 'tokens READ', 'fielddefs READ') called at Bugzilla/User.pm line 1548
        Bugzilla::User::create('Bugzilla::User', 'HASH(0xb3e0f78)') called at Bugzilla/Install.pm line 330
        Bugzilla::Install::create_admin() called at ./checksetup.pl line 214

So I decided to check out the DB but I was denied access.

As MySQL root I set up permissions prior to executing the install script.

mysql> GRANT SELECT,INSERT,UPDATE,DELETE,INDEX, ALTER,CREATE,DROP,REFERENCES ON bugs.* TO bugs@localhost IDENTIFIED BY 'SomePassword';

mysql> FLUSH PRIVILEGES;

Then I ran the script which gave me the above error. So I decided to cheek out the DB. As root I executed mysql -u=root (I did not get a password prompt, which I thought was way odd since I have set the root password)

Note, that the database bugs is not listed. However it is in the system somewhere

mysql> create database bugs;
ERROR 1044 (42000): Access denied for user ''@'localhost' to database 'bugs'

mysql> GRANT SELECT,INSERT,UPDATE,DELETE,INDEX, ALTER,CREATE,DROP,REFERENCES ON bugs.* TO bugs@localhost IDENTIFIED BY 'SomePassword';
ERROR 1044 (42000): Access denied for user ''@'localhost' to database 'bugs'

I am not very failure with BugZilla.. Any suggestions on how to get rid of this error and continue installation?