Solved it, really simple

[Raine R]

Just as the prompt said, that the problem lies in either firewall blockage or there's an old mysql data directory (from your previous installation).

So, if after u tried to set a firewall blockage exception for mysql (port 3036) it still failing.
that means the problem is with the existence of an old data directory.

IF the configuration wizard ask for your old/current password that means u actually HAVE a current/old password from previous mysql installation.
so if u enter a password besides your old one it would get to this error.

If u forget your old password, u should delete the old mysql data directory folder.

The steps are:
1. Un-Install mysql

2. Delete the old mysql data directory folder (on winXP, its located at: C:\Documents and Settings\All Users\Application Data\). delete folder 'mysql'

3. Re-Install mysql

After u did those steps, u would not be asked for an old/current password anymore, u just need to enter a new password and confirmation.

Hope this helps!