ERROR 1045 (28000): Access denied (no replies)

Hi guys, I've installed MySQL and I'm trying to work with 'Learning SQL second edition' The problem is I get the error ERROR 1045 (28000): Access denied

Here are the steps the book uses:

1 Open the Run dialog box from the Start menu Choose Start and then Run
2 Launch a command window Type cmd and click OK
3 Log in to MySQL as root mysql -u root -p
4 Create a database for the sample data create database bank;
5 Create the lrngsql database user with full privileges on the
bank database
grant all privileges on bank.* to
'lrngsql'@'localhost' identified
by 'xyz';
6 Exit the mysql tool quit;
7 Log in to MySQL as lrngsql mysql -u lrngsql -p;
8 Attach to the bank database use bank;


It's all fine until step 7. Once I quit; and try to log in I get:

C:\Documents and Settings\Michael Harper>mysql -u lrngsql -p;
ERROR 1045 (28000): Access denied for user 'lrngsql'@'localhost' (using password
: YES)

Any ideas?

Thanks