Since you've specified connecting over the netowrk with '127.0.0.1:3306' (IP:port) you may need to check and make sure your MySQL config file has networking enabled. On Windows the config file my.conf should be under the conf directory where you installed MySQL. Open the file and look for the line 'skip-networking' and comment it out. Networking is disabled by default for security reasons.
I'm not sure if this will help, and I'm not sure why it would work from the command line and not through the server (I'm posting this pre-coffee), but your error message looks similar to the one I invariably get every time I set up Apache/MySQL reminding me to enable networking. Apparently I am unable to remember this little fact on my own. :)
eclecticIO
"Given the pace of technology, I propose we leave
math to the machines and go play outside."
Calvin - Homicidal Psycho Jungle Cat