The data looks right so my next line of thinking is whether the user can connect from the host. MySQL is very granular about who can connect and from what machine. If the db is on the same server as the web try using root with a blank password in the connection string. If not on the same machine, do you have a MySQL client on a remote machine that you can use to try and connect from using the mojo user?
Also make sure MySQL is configured to accept tcp/ip connections, you may need to refer to the MySQL documentation for that.
Other than that I can say I have never tested with mono 1.0.6, my understanding is the 1.1.4 branch is now considered the most stable. You might try deploying the release files instead of the compiled sources and see if that makes any difference, though it really shouldn't. If you continue getting errors is it possible for you to un-install mono and install the 1.1.4 branch?
I try to be responsive on support, whether I can actualy help you is yet to be seen