Okay, I got some tables I am going to have accessible that I want to have multiple users have full access or just read access to. I have fallen into a portable hole. How do I create users and allow them to access the system?

Here, I have already done this command
[schotty@leinenkugel apt]$ mysql -u root -p
Enter password: 
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 10 to server version: 3.23.54

Type 'help;' or '\h' for help. Type '\c' to clear the buffer.

mysql> grant all on * to schotty identified by 'password';
Query OK, 0 rows affected (0.01 sec)

mysql> exit;
[schotty@leinenkugel apt]$ mysql -p
Enter password: 
ERROR 1045: Access denied for user: 'schotty@localhost' (Using password: YES)
[schotty@leinenkugel apt]$
But when I try to login you see what I get. Any ideas? I wanted to use MySQL GUI to start filling up some tables. MySQL GUI wont connect either. Even if I try to use login root. I figure maybe you guys have a clue as to where I am screwing up.