Any joy on the server error?
Have you managed to sort this yet?
I wondered if it may help if I give you my configuration of the Connections file?
$hostname_localhost = "00.00.000.000"; //Put my server IP address here
$database_localhost = "whatever"; // Name of database on server
$username_localhost = "something"; //username for access to database
$password_localhost = "anythingSecure"; //Good password
$localhost = mysql_pconnect($hostname_localhost, $username_localhost, $password_localhost) or trigger_error(mysql_error(),E_USER_ERROR);
With this file, Dreamweaver set up correctly and the globals.php file set up, you should be able to view details of the database under the Databases tab in Dreamweaver.
Hope this helps!