Bitrock installer pack

[Karnallie]

Pardon my lack of knowledge!
I'm trying to install the installation pack for Windows XP Pro. In step 3 it asks host name (which I leave as localhost), Database Name (which I leave as sugarcrm) as well as the Database Username, also left as sugarcrm. Point is I get Error 2003: Can't connect to MySQL server on 'localhost' (10061).
What am I dong wrong or what do I need to do?
Thanks

[HomeTeam]

Have you already setup the database and username? If not have you selected the check box to have sugar create them?