Ruby on Rails having a rough time connecting to MySQL

Question

I'm having a hard time getting Ruby to connect to mySQL. I can get MYSQL to connect using the mySQL workbench, so that's good. Here is the error I'm getting when I try to run DBConsole.

W:\testMySQL>rails dbconsole
Enter password: ********
ERROR 1045 (28000): Access denied for user 'coffeetowndev'@'localhost' (using pa
ssword: YES)

I'm running on a Database on a GoDaddy account, so I'm not able to grant all privledges to that user. I called godaddy, and they swore their 'RoR' department was able to connect using my settings. Speaking of this, here is the database.yml file.

development:
 adapter: mysql
 encoding: utf8
 reconnect: false
 port: 3306
 database: coffeetowndev
 pool: 5
 username: coffeetowndev
 password: ********
 hostname: coffeetowndev.db.5850247.hostedresource.com

on a related/unrelated note, I'm not able to get mySQL2 gem to install, so I'm using the mySQL one.

edit: entire database.yml file

development:
 adapter: mysql
 encoding: utf8
 reconnect: false
 port: 3306
 database: coffeetowndev
 pool: 5
 username: coffeetowndev
 password: ********
 hostname: coffeetowndev.db.5850247.hostedresource.com

test:
 adapter: mysql
 encoding: utf8
 reconnect: false
 port: 3306
 database: coffeetowntest
 pool: 5
 username: coffeetowntest
 password: ********
 hostname: coffeetowntest.db.5850247.hostedresource.com


production:
 adapter: mysql
 encoding: utf8
 reconnect: false
 port: 3306
 database: coffeetown
 pool: 5
 username: coffeetown
 password: ********
 hostname: coffeetown.db.5850247.hostedresource.com