The error you are getting in regards to your connection is coming directly from the MySQL server. So it is your server that is saying the password or connection is not valid, not any of our scripts. Are you able to test this connection file with any other pages that make reference to it?
The error says that access is denied so it seems that the username if off, the password is off, or the address used for the server is not accessible from this script. I would suggest that you make a new page that makes use of this connection and put a recordset on the page and display some values from the rs to test it out.