Cannot login to the Mysql Server created by Virtualmin using root user and password

Well, joy not for long cos now I cant connect to the virtualmin installed mysql server via Virtualmin and even on the console I can only connect without password but I cannot even create a database. From the Debian terminal

mysql That works

mysql -u root That works too

mysql -u root -p Works ONLY IF I do not enter a pw but just press enter. Else if use a pw gives the following error: Access denied for user 'root'@'localhost' (using password: YES)

In all cases that worked, I get error when I try to create a database like so: create database test2; ERROR 1044 (42000): Access denied for user ''@'localhost' to database 'test2'

I dont know It seems strange cos even when I use mysql -u root it still says user ''@'localhost' indicating no current username.

To change the root password, I tried to use mysqladmin command but that gave me error too so I put the mysql server in safe mode and edited the password field of the user table in the default mysql database.

UPDATE user SET Password=PASSWORD('mypassword') WHERE User='root';

But on the command line I still cant login with the new pw i created.

mysql -u root -p Enter password: Access denied for user 'root'@'localhost' (using password: YES)

On Webmin->Servers->Mysql server I try to make a database connection too but I get similar error(s). I tried the module config link to set a mysql server log on info. Error: DBI connect failed : Access denied for user ''@'localhost' (using password: YES)

Could anyone point me to how I can get the root user to login with a password? I have confirmed that the password is set.

Also i have never seen this where root user has login problems. Could there be a problem with this installation since it is done automatically with virtualmin?

Any clues anyone? Thanks