"set up database" problems on windows XP with wamp

I can't install Drupal6 on my Windows XP sp2. I am at Set Up Database step and i do enter correct database name, user and password and click Save and Continue but it keeps taking me back to the same Set Up Database. Any help on this would be appriciated.

Im using:

Windows XP SP2

HOSTS 127.0.0.1 localhost
127.0.0.1 drupal

Drupal 6.4

WAMP 2.0

C:\wamp\www\drupal\sites\dup
C:\wamp\www\drupal\sites\dup - permissions for folders to EVERYONE
C:\wamp\www\drupal\sites\dup\settings.php

PHP 5.2.6

APACHE 2.2.8

Listen 80
Listen 8080
ServerName drupal:80
Just in case, the IIS was set up to port 8089!! and its not running!

MYSQL 5.0.51B

Port 3306

Ive created a DbDrupal database as copy of MySql database (and renamed the root as drupal_user) and privileges:

INSERT INTO user
VALUES('localhost','drupal',PASSWORD('drupal'),
'Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y');
FLUSH PRIVILEGES;

I can have acess to every table and ive been check the permission on MySql (dbdrupal) everything looks to be fine!

Any help would be appreciated!