During the mysql installation I followed the instructions which are:
1. After unpacking the tarball create link to the long directory name:
ln -s mysql -VERSION-OS mysql
Did that.
2. chown -R root /usr/local/mysql
chown -R mysql /usr/local/mysql/data
chgrp -R mysql /usr/local/mysql
Did that.

Here comes the question : mysql is actually a soft link to the directory.When I change ownership of the link will it change correcty ownership of the directory itself?
In the ls -la I see user as 505, why? Has it something to do with the link? What is 505?

[root@sno mysql]# ls -la
total 4740
drwxrwxr-x 13 505 mysql 4096 Dec 27 05:51 .
drwxr-xr-x 13 root root 4096 Feb 5 14:30 ..
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 bin
-rw-rw-r-- 1 505 mysql 122213 Dec 26 19:24 ChangeLog
-rwxrwxr-x 1 505 mysql 773 Dec 27 05:51 configure
-rw-rw-r-- 1 505 mysql 19106 Dec 26 19:26 COPYING
-rw-rw-r-- 1 505 mysql 47577 Dec 26 19:26 COPYING.LIB
drwxrwx--- 4 mysql mysql 4096 Feb 5 16:00 data
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 include
-rw-rw-r-- 1 505 mysql 147348 Dec 26 19:26 INSTALL-BINARY
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 lib
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 man
-rw-rw-r-- 1 505 mysql 2327794 Dec 26 19:26 manual.html
-rw-rw-r-- 1 505 mysql 85510 Dec 26 19:26 manual_toc.html
-rw-rw-r-- 1 505 mysql 2012785 Dec 26 19:26 manual.txt
drwxrwxr-x 6 505 mysql 4096 Dec 27 05:51 mysql-test
-rw-rw-r-- 1 505 mysql 1976 Dec 26 19:24 README
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 scripts
drwxrwxr-x 3 505 mysql 4096 Dec 27 05:51 share
drwxrwxr-x 7 505 mysql 4096 Dec 27 05:51 sql-bench
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 support-files
drwxrwxr-x 2 505 mysql 4096 Dec 27 05:51 tests