Cannot install jahia 5.0 on mysql 5.0

Hi,
I have been trying to use mysql as a backend db for jahia. In Jahia
Configuration wizard, I go to advance settings for database, select mysql
and put these values
driver com.mysql.jdbc.Driver
url jdbc:mysql://localhost/jahia?useUnicode=true&characterEncoding=UTF-8
username jahia
passwd jahia

I have already created a user jahia with passwd jahia and also created the
database jahia on my local mysql server. I also have UTF-8 charset enabled
in my mysql server instance. I am able to connect to this DB using mysql
client.
However, when I use these settings, jahia gives an error - Can't talk with
the database. Check your settings.

I also tried url
jdbc:mysql://localhost:3306/jahia?useUnicode=true&characterEncoding=UTF-8

What can be possibly wrong in this setup?
Sanjay Goel
http://sanjaygoel.blogspot.com