Perhaps you could post the link to this thread?
thx Mike
It is on the FAQ link that was posted scroll down to databases section you'll see...
Databases
How can I access mysql from LAN?
You can use PHPMyAdmin from within an Ibay on the SME box, but you can't connect to Mysql with ODBC connector or Mysql Administrator from the network without config changes. The mysql database daemon is configured by default to accept only local connections (i.e. it is not accessible via the local network or internet).
This is a security precaution, since mysql only requires access from localhost by default installations.
If you wish to enable local network access, execute the following commands on a SME Server shell as root:
/sbin/e-smith/config setprop mysqld LocalNetworkingOnly no
/sbin/e-smith/expand-template /etc/my.cnf
/etc/rc.d/init.d/mysqld restart
This issue is described here:
http://forums.contribs.org/index.php?topic=29639.msg123869#msg123869 and is documented in
http://bugs.contribs.org/show_bug.cgi?id=339