The IDENTIFIED BY clause is the literal plain password of test_user to
login/connect to that mysql server.

So in this case when using mysql you run it like:
*mysql -utest_user -p@@TEST_SOD@@*

Run this sql
select host, user,password, password('@@TEST_SOD@@'),
(password=password('@@TEST_SOD@@')) as enc from mysql.user
where user='test_user';
You will see that enc column is 1 meaning the encrypted password field is
the same as when you encrypt @@TEST_SOD@@ with the password function. It
also means that the encryption of mysql user accounts uses its password()
function.
The @@ in this case is not your usual mysql variables.

JC

On Mon, Apr 4, 2011 at 3:08 PM, <
javaprogrammingwithpassion+nore...@googlegroups.com> wrote:

>   Today's Topic Summary
>
> Group: http://groups.google.com/group/javaprogrammingwithpassion/topics
>
>    - MySQL SQL question <#12f1f57ab05db964_group_thread_0> [1 Update]
>
>   Topic: MySQL SQL 
> question<http://groups.google.com/group/javaprogrammingwithpassion/t/e5b69377757bc5e>
>
>    S Xia <sxia2...@hotmail.com> Apr 03 11:54AM -0400 
> ^<#12f1f57ab05db964_digest_top>
>
>    Hi,
>
>    In the following statement,
>
>    GRANT ALL PRIVILEGES ON *.* TO test_user@localhost IDENTIFIED BY
>    '@@TEST_SOD@@' WITH GRANT OPTION;
>
>    Where does @@TEST_SOD@@ get the value from? How is it set? 
> more...<http://groups.google.com/group/javaprogrammingwithpassion/msg/f5c92930058afaef>
>
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