mysql not letting me grant privileges using root to users

[Jim McNamara]

Hi all-

I am trying to grant privileges to a db in mysql and it won't let me use any grant powers to assign privileges to the object test database on localhost. It is like my mysql root doesn't have any with grant. I tried the following:

GRANT ALL PRIVILEGES ON *.* TO 'root'@'%' WITH GRANT OPTION;

It tells me the following error:
ERROR 1410 (42000): You are not allowed to create a user with GRANT

Is there anyway I can give the root user the power to grant privileges to other users and objects?
THANKS robo-loki