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Had same problem and tried this and it worked;
CREATE USER username@'%' IDENTIFIED BY 'password';
GRANT ALL PRIVILEGES ON *.* TO 'username'@'%' ;
flush privileges;
This is confusing indeed. Error 0 means success.
$ perror 0
OS error code 0: Success
Can you add this to your [mysqld] section in my.cnf:
bind-address = 0.0.0.0
Restart MySQL. Can you also post the output of this command from your workstation (not server):
telnet DROP.LET.IP.ADDRESS 3306
Cheers