I am experiencing the same exact issues as detailed by erina above.
I have double-checked and made sure the testing server Site Definition in Dreamweaver is configured properly. and followed the instructions in the tutorial mentioned above.
What I was trying to accomplish is to set up Power CMS to an already existing site and add a connection to a database for PowerCMS to use.
So the credentials for the database connection are to the external server of my hosting provider.
I have been going at this for quiet some time now.
Any help is greatly appreciated.