Thanks for the replies, but I still have the problem. I deleted the existing 
setup and started afresh on a different machine. I did the same things 
suggested by Richard. In the jackrabbit config file, the database settings are 
defined using a Datasource and the Datasource is used in the workspace 
persistence-manager, and for the versioning configuration. So I did not have to 
change them twice. Webstats is the local machine on which magnolia is now 
installed.
Here is the exact error that I am getting:
 Cannot create PoolableConnectionFactory (Access denied for user 
'root'@'webstats.hq.bn-corp.com' (using password: NO))
        at 
org.apache.commons.dbcp.BasicDataSource.createPoolableConnectionFactory(BasicDataSource.java:1549)
        at 
org.apache.commons.dbcp.BasicDataSource.createDataSource(BasicDataSource.java:1388)

Thanks for your patience.

-- 
Context is everything: 
http://forum.magnolia-cms.com/forum/thread.html?threadId=fb642df3-2616-4fc6-9315-3a4d04e38402


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