Cannot connect to MySQL server in Dreamweaver MX 2004

I am trying in Dreamweaver MX 2004 to connect to MySQL database.

My Site Definition is as follows:

Category
Local Info
Local root folder: C:\xampp\htdocs\smartad\
HTTP address: http://localhost/smartad/
Remote Info
Access: Local/Network
Remote folder: C:\xampp\htdocs\smartad\
Testing Server
Sever Model: PHP MySQL
Access: Local/Network 
Testing Server folder: C:\xampp\htdocs\smartad\
URL prefix: http://localhost/smartad/
In MySQL Connection I enter
MySQL server: localhost
Username: root
Password: (no password)

When I click "Select" to select database I get message "An unidentified error has occurred."

When I click "Test," I get message "Please use only characters A-Z, a-z, 0-9, and _ in the name."

Both Apache and MySQL servers are running and in phpMyAdmin I am able to see my database and tables.

Could you help me to solve the problem?

Thank you, Dragan