Problem when creating stored procedure in MySql5.0

[kranthi chamarthi]

Hi,
I am not sure if its correct place to post, but it will be great if someone can suggest me some solution.
I am trying to create a stored procedure in MySql 5.0(I am using MySql Yog interface). But its throwing following error

 
Error Code : 1044
Access denied for user 'root'@'%' to database 'mydatabase'

I googled the error and found that i should be giving privileges to the user 'root'@'%'
For that i used the following command

GRANT ALL  ON *.* TO 'root'@'%' IDENTIFIED BY password('mypassword') WITH GRANT OPTION;

I checked the user table in mysql database and found that the 'root'@'%' is having all the privileges
I tried to create procedure again with following command...

DELIMITER $$

DROP PROCEDURE IF EXISTS `mydatabase`.`sample`$$

CREATE PROCEDURE `mydatabase`.`sample` (OUT param INT)
BEGIN
select count(*) INTO param from user_dtls;
END$$

DELIMITER ;

But still its giving me the same error.
Please suggest me what's the problem.
Thanks
Kranthi