No suggestions from me, just being nosey.
Are you now using XAMPP exclusively, - have you shut down IIS?
Could you provide a screenshot of the local connection in your connections window (click the connection in Databases panel) and post it here?
Could you provide a screenshot of the testing server settings in the site definitions window (site > manage sites) for your site?
Did you accept default installation of MySql, or did you add username and/or password for the localhost connection?
Can you access your remote-server (online) database via your control panel / phpMyAdmin?
Any information will help.
ADDED EDIT: When you said you were using IIS, and that "I reconfigured IIS and my server root folder is "C:\grytrn\"" did you have the testing server folder as C:\Inetpub\wwwroot\grytrn ?