You may have a corrupted phpMyAdmin installation as I have just tested using phpMyAdmin 3.4.5 in XAMPP 1.7.7 and I could create a database newdb
and a user with password for that database in much the same way as the previous versions (only slight variations as now there are new frames created and I prefer to right click on the links to create the frame in a new tab).
After I created the newdb database I clicked on Privileges
tab and selected Add New User
I added newdb
user name for localhost
and gave it a password
for database selected.
Then I click Create
In the list of Users in the Privileges table I clicked on the newdb
user so it had a tick in the box then on Edit privileges
Then under Database specific privileges
I clicked on the Add privileges on the following database
drop box and selected the newdb
Then when the Window changes to add specific privileges I selected Check all
and then on Go
I then received a confirmation window that all was created as I had entered the information.
Next I click on the main Privileges
tab to check my new user newdb
Global privileges: USAGE
All is well and as expected.
I notice that you have created 2 users and granted them Global privileges which is a big mistake.
You should create a password for super user root using the Security menu item in the XAMPP Admin page.http://localhost/xampp/index.php
User root should be the only user with Global privileges.
Following the above method you can edit the privileges of any user you create and give privileges to any specific database, in fact change anything related to a user.
Any user you create should only be granted privileges to a specific database only not to Global privileges as this could pose a security threat if ever that username/password combo was compromised.
If your XAMPP installation is suspect then you can follow these instructions to uninstall/install using a different method.viewtopic.php?p=179699#p179699