OK, I think it's just a matter of terms.
The database lives in the mySQL database server, not in the file system.
- A database is a collection of tables.
- A table is a collection of rows (or records)
- A row is a collection of columns (or fields)
In your image, you have named your database users_sql (could be just about any name). When you inported the .sql script, it created a table called users.
So you should change:
$database_localhost = "users";
$database_localhost = "users_sql";
so that it matches the database name you have in the mySQL server.
You can completely remove the Database folder from your Dreamweaver site because you only use the users.sql file once to import the table into your database. All of your data will be stored on the mySQL server database (users_sql)
Your screen grabs were very helpful and you're asking all the right questions. :)