I have opened a ticket for you on this connections issue so that we can look into it further. The default PowerCMS files should reference $localhost for the connection information. The connection file included with PowerCMS should be called localhost and contain the defined localhost variables.
To update your ticket login and visit your support history, here is a link:
supporthistory.php
When it comes to the URL what you do have specified in your globals file for the local and remote URL values? Based on the results you posted you should have the local root URL set like this:
/pillarpoint/CMS/