Access denied for user 'mysite'@'localhost'

I'm getting the following error message when trying to 'syncdb' for the first time. I upgraded my project from django 1.3 to the format or django 1.4.x on my development machine where it works. On the webfactional server I get this error. I believe I have all the settings in settings.py correct but I must be missing something.

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   File "/usr/local/lib/python2.7/site-packages/MySQLdb/connections.py", line 187, in __init__
      super(Connection, self).__init__(*args, **kwargs2)
_mysql_exceptions.OperationalError: (1045, "Access denied for user 'mysite'@'localhost' (using password: YES)")

I have created a db called mysite_db. Here are my db settings (settings.py):

DATABASES = { 'default': { 'ENGINE': 'django.db.backends.mysql', 'NAME': 'mysite_db', 'USER': 'myusername', 'PASSWORD': '****', 'HOST': '', 'PORT': '', } }

Any ideas as to what would cause this?