This seems like a simple MySQL user authentication problem. Are you sure you're using the right username and password when using JDBC? For information on changing your password, or creating new MySQL user accounts, use the GRANT query:
http://dev.mysql.com/doc/refman/5.0/en/grant.html
As for saving your JSPs in the root folder of Tomcat, I believe you are confused. I know your implementation is working because the stack traces show the execution thread going through your JSP -- so they're working fine. Therefore you must have placed your JSPs in /webapps/???.war/.
This is fine, but from an architectural perspective you probably want to do your development outside of the Tomcat folder and use an Ant script to build your code into a WAR and deploy it on your server. This way you can check in your project to CVS, Perforce, or some other code management system and not worry about it becoming corrupted/altered in the course of execution.
Jon Emerson
http://www.jonemerson.net/