It definitely looks as though you are specifying the name of your db and username correctly. I'm not sure why you would get this error if the db exists with that name. Something that you may want to try is to create a new db and make sure to use only lowercase characters. Then create a new user for the db and do the same for the username, use only lowercase letters.
This is about the only thing that I could think of that would cause you to not have access. Let us know if you continue to have problems with this and we will take look with you for some of the settings and try to help determine what the problem is.