I am still a novice at this.
So, when you are doing the Configuring Mysql part you create a data base
create database moodledb;
Then create a user for Moodle
Create user 'moodle_user'@'localhost identified by 'password1';
If your Mysql is on a seperate machine from moodle its self do you change the localhost part to the IP of the machine hosting Moodle?
(Windows08 server, IIS7)