Yes I used FLUSH PRIVILEGES;
Did it again... But no change...
I tried to logon with the user and pass from the console and it worked
houston2:/etc/postfix# mysql -u pureftpd -p
Welcome to the MySQL monitor. Commands end with ; or \g.
Your MySQL connection id is 3847 to server version: 4.1.11-Debian_4sarge2-log
Type 'help;' or '\h' for help. Type '\c' to clear the buffer.
mysql> show databases;