Problem making connection to MySQL server

[Julia Belinski]

We are installing MySQL on Windows 2000 and cannot make a connection to the server. Some details:
1. mySQL has been installed to the D drive into d:\mysql
a. changed the ini file (thru WinMySQLadmin.exe) to point to the D drive
2. The web server is also on the D drive. We have made sure that we can connect to the IP address through a browser - so the web server is working.
3. When in the command prompt, trying to use any of the mysql commands it tells us "Cannot connect to host ...."
3. We tried entering the IP address of the web server along with the mysql command, but it still tells us "cannot connect ..."
4. Even trying to use telnet to connect to the server (telnet ipaddress port) tells us "... not allowed" and disconnects from the MySQL server.
5. the MySQL administrator does start (the stop light is green and is running).

Is there something else that should be done if installing to a drive other than the D drive?

Is this possibly a problem with permissions for the MySQL server?

Any suggestions are greatly appreciated. (even if it is starting over again with the install and the steps that should have been taken).

P.S. This is a client that is remote from me so I am trying to help them over the phone.