MySQL docs say this. Maybe you're compiling your DBD using an old library? The linked doc suggests a workaround.

For comparison, I have a newer mysqld, an older DBI and DBD::mysql, yet it works for me. I don't know if my admin uses --old-passwords or not.

$ mysql -u ... -p
Enter password:
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 723796 to server version: 4.0.18
...
$ perl -MDBI -le'print($DBI::VERSION)'
1.40
$ perl -MDBD::mysql -le'print($DBD::mysql::VERSION)'
2.0419

[download]

In reply to Re: DBI/DBD mysql upgrade woes by ikegami
in thread DBI/DBD mysql upgrade woes by shemp

Title:
Use:  <p> text here (a paragraph) </p>
and:  <code> code here </code>
to format your post, it's "PerlMonks-approved HTML":


  • Posts are HTML formatted. Put <p> </p> tags around your paragraphs. Put <code> </code> tags around your code and data!
  • Titles consisting of a single word are discouraged, and in most cases are disallowed outright.
  • Read Where should I post X? if you're not absolutely sure you're posting in the right place.
  • Please read these before you post! —
  • Posts may use any of the Perl Monks Approved HTML tags:
    a, abbr, b, big, blockquote, br, caption, center, col, colgroup, dd, del, details, div, dl, dt, em, font, h1, h2, h3, h4, h5, h6, hr, i, ins, li, ol, p, pre, readmore, small, span, spoiler, strike, strong, sub, summary, sup, table, tbody, td, tfoot, th, thead, tr, tt, u, ul, wbr
  • You may need to use entities for some characters, as follows. (Exception: Within code tags, you can put the characters literally.)
            For:     Use:
    & &amp;
    < &lt;
    > &gt;
    [ &#91;
    ] &#93;
  • Link using PerlMonks shortcuts! What shortcuts can I use for linking?
  • See Writeup Formatting Tips and other pages linked from there for more info.