Oops - threads crossed! You should not need Ms Sql, but (I think) using port 3307 should be OK - I can't see your image, - too small (images seem to have sizing problems on upload here!).
Final test from me, then I'm out of ideas. You know the password, and you've entered the name of the database you created for Site Sculptor correctly.
In Dreamwever, make a new connection file. In a site that has been defined (with your testing-server) and a php page opened and saved, open the Databases panel (Ctrl+Shift+F10).
Click the plus (+) button and click MySql Connection.
In the MySql Connection window that opens, enter:
Connection name: localhost
MySQL server: localhost
User name: root
To the right of the Database Field, click 'Select', and from the 'Select Database' window, select your new database - whatever you called it.
Click OK. Then click the 'Test' button. Do you get the 'Connection was made successfully' message (as per attached image)?