DATABASE in settings file not working

Hi,

I am just coming back to django development after a while of
developing with pyramid. I have taking over an application.

For some reason with the newest version of django it is not reading
the password I set in settings:

DATABASES = {
'default': {
'ENGINE': 'django.db.backends.mysql', # Add
'postgresql_psycopg2', 'postgresql', 'mysql', 'sqlite3' or 'oracle'.
'NAME': 'mydatabase', # Or path to
database file if using sqlite3.
'USER': 'root', # Not used with sqlite3.
'PASSWORD': 'mypassword', # Not used with
sqlite3.
'HOST': '', # Set to empty string for
localhost. Not used with sqlite3.
'PORT': '', # Set to empty string for
default. Not used with sqlite3.
}
}

When starting the server I get the following error:
...MySQL_python-1.2.3-py2.7-linux-x86_64.egg/MySQLdb/connections.py",
line 187, in
__init__
_mysql_exceptions.OperationalError: (1045, "Access denied for user
'root'@'localhost' (using password: NO)")

Not sure why it is saying there was not password. For the newest
version of django is there a new way to tell python manage.py
runserver what password/username/database to use?

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