RMX-OS Error [SOLVED]

[jyumai]

I used to run a small RMX-OS Server which USED to run sucessfully until recently.
I reinstalled the server...MYSQL, Navicat and all and configured the cfg.ini file correctly.
However, everytime I run the server it gives me this error:

Can't connect to MySQL server on '127.0.0.1' (10061)

I checked MySQL and the service is running. Here is my cfg.ini configuration:

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NAME = 'rmxos'
HOST = '10.0.0.2'
PORT = 54269
RMXOS_VERSION = 1.15

LOG_MESSAGES = false
LOG_ERRORS = true
LOG_ACTIONS = true

DEBUG_MODE = false

MAXIMUM_CONNECTIONS = 20
LOGIN_TIMEOUT = 60
AUTO_RESTART = true
RESTART_TIME = 5
USE_IP_BANNING = true
PREVENT_ZOMBIE_CLIENTS = false
RUBY_PROMPT = false
OPTIMIZE_DATABASE_ON_STARTUP = true
DATABASE_CONNECTION_TIMEOUT = 60

SQL_HOSTNAME = '127.0.0.1'
SQL_USERNAME = 'root'
SQL_PASSWORD = '**********'
SQL_DATABASE = 'rmxosdb'

INBOX_SIZE = 10

EXTENSIONS = ['babsrmxos', 'userlogger'
]

I also have SQL Enterprise which contains a database for an MMORPG private server. I disabled it temporarily but it still didnt work. My firewall allows ruby and the server file to run without being blocked. So what is the problem?

[Blizzard]

Try literally "localhost" as SQL_HOSTNAME.
Make sure your MySQL service is actually running. For that hit the Windows button, and type "services" (alternatively Control Panel -> Administrative Tools -> Services).

[jyumai]

Checked. Mysql is running Im 100% sure. Tried the actual word 'localhost'....failed.

[Blizzard]

Then try looking up error 10061 on Google.

[jyumai]

Then try looking up error 10061 on Google.

I did some research but apprantly the problem is the connection was refused. All the sites said to check to see if MySQL is running (which it is, I know) and try the telnet command in command prompt. I tried telnet 127.0.0.1 3309 and it connected (I used 3309 because there is something else running on the 3306 port). I still cant get the server to work.