These error messages look very strange:
141031 23:41:48 [Warning] Found invalid password for user: 'mike@localhost'; Ignoring user
141031 23:41:48 [Warning] Found invalid password for user: 'admin@%'; Ignoring user
This does NOT mean, that any client tries to connect with the wrong password, instead this means, that the password is corrupted. Usually passwords are stored in a crypted manner and it looks like this encryption has been overwritten by "something", so that it is not a valid password. I dont know if you are going to use these MySQL UserIDs, but there is something very strange happening, it just looks like as someone edited the MySQL User Table manually and inserts invalid passwords (or similar). I have never seen this message before. Find out, what is going wrong there!
The only thing I did on phpMyAdmin is to change the passwords on mike and admin user. There is something I miss here with the password change management in mySQL
Aha - i did not read that before, but obviously, you did not manage to do it the right way. You MUST NOT change the User table manually, instead you *should* use phpmyadmin to edit the Users with the appropriate dialog. I think, that you provided plain text passwords, but passwords usually are encrypted using the MySQL Builtin Function "PASSWORD()". Therefore you corrupted these two users.
You have to choose "Users" from the top menu, activate the user "admin" for example, submit and choose "Change Password". In that dialog you will find an option, if the Password should be compatible to MySQL 4.0 (and prior) or to MySQL 4.1 (and later). Activate the correct option, then appy the password. DO NOT EDIT USER TABLES MANUALLY!!