MySQL Forums :: Newbie :: mySQL database intial set-up

I isntalled mysql 5.5.2. connected using
$ mysql -u root

mysql> show databases;
+--------------------+
| Database |
+--------------------+
| information_schema |
| test |
+--------------------+
2 rows in set (0.20 sec)

there is no database like mysql. what to do. unable to do anything. frustrating.
unable to create any user, database.
if I try
$ mysql -u root -p
it is prompting for root password. what is root password by default?
if I simply press enter, I am getting into mysql, but unable to do anything.
if i give some password it is saying
Enter password:
ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: YES)
if somebody helps, I will continue using mysql, else I will shift to some other database. as mysql has wasted my lot of time.