Could not connect to the database

Receiving the following error when attempting to install.

Error: Could not connect to the database please make sure the database server, username and password is correct!

I am using xampp with default settings and am trying to use "localhost" for the database host.

1. do i need to create the database before install or does the install create it?
2. if i do need to create the database, before install, do i run the sql scrip inside the install folder or just create an empty db?
3. with xampp should i be using something besides "localhost"? ie "localhost/phpmyadmin" or some such?

Figured it out. seems the user i created i needed to change it's related host to localhost.