You don't need to do the command in DOS in order to create a user/pass. If you boot up mysqladmin.exe (the one with the MySQL logo), before you log in it pops up a window asking for you to designate a username and password.
Once this is done, you just source your DB and input the right IP #s for your server to get up and running and it should work. For further reference, make sure you have MySQL up every time you want to run your server, otherwise it won't read your DB and you'll be stuck.
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