For what it’s worth, I’m using MAMP and having the same problem. I downloaded Mamp specifically for use with WordPress locally, using WordPress 2.3. Whether I use the friendly wp-config.php file maker or I edit the file manually, I still end up in the same situation being unable to connect to my database. I can connect to the database with MySQL Admin and Cocoa Mysql, so I assume it’s something that’s wrong with wordpress or MAMP.