Error 403 Forbidden

I'm having trouble connecting to MySql Database with Dreamweaver. I'm Running:

Mac OS X 10.3.9
mysql-max-5.0.15
php-5.0.4-apache2
Macromedia Dreamweaver 8

I'm building a PHP webpage and when I try to connect to a Database I'm having
troubles.

In Dreamweaver the Site Definition - Testing Server I have:

PHP MySQL

Access: Local/Network

Testing Server Folder: (What do I put here???) I've tryied localhost and
MacintoshHD/Library/WebServer/Documents but it didn't work.

When I go to set the Recordset connection and I set the connection to MySQL
I've tryed using MySQL Server: localhost (What's the correct value here?), when
I click on Select database I have the following error: Cannot display the
remote folder localhost cannot be accessed or does not exist. Make sure the
remote folder is available or select a different one clicking Manage Sites...'

Does anyone know how should I change the settings to make it work? I want to
build a PHP page and host it on my G4, I also want to run the MySQL database on
the G4. Has anyone been succesful in setting Dreamweaver to connect to the
database? Can anyone help?

I've made some progress:

I've created a new site. the local folder is the user webpage folder in
User/Sites/. the remote is the G4 webpage
MaintoshHD/Library/WebServer/Documents/. the url is http://192.168.0.2 (Which
is this machine LAN IP address). The testing Server is also
MacintoshHD/Library/WebServer/Documents/.

When I try to connect to the database now I have MySQL Server: 192.168.0.2,
when I click on select I now get the following error: Unidentified error HTTP
Error Code 403 Forbidden.

Any ideas?

I downloaded phpMyAdmin and it can't connect either.

Welcome to phpMyAdmin 2.6.4-pl3

phpMyAdmin tried to connect to the MySQL server, and the server rejected the
connection. You should check the host, username and password in config.inc.php
and make sure that they correspond to the information given by the
administrator of the MySQL server.
Error

MySQL said: Documentation
#1251 - Client does not support authentication protocol requested by server;
consider upgrading MySQL client