Installing and upgrading help

Many thanks to Martin and John for your suggestions. The problem was solved by changing database setup to

$CFG->dbuser    = "sailomv";   
$CFG->dbpass    = "**********";   .

Other problems are : 

Warning: Failed opening '/theme//header.html' for inclusion (include_path='.;c:\php4\pear') in c:\easyserv\www\moodle\lib\weblib.php on line 625

ERROR: No lang file (/lang/en/moodle.php)!

ERROR: No lang file (/lang/en/moodle.php)!

lang:
 
Warning: OpenDir: Invalid argument (errno 22) in c:\easyserv\www\moodle\lib\moodlelib.php on line 1114

Warning: readdir(): supplied argument is not a valid Directory resource in c:\easyserv\www\moodle\lib\moodlelib.php on line 1115
  ERROR: No lang file 
 
and more ....

This is my "config.php"

$CFG->dbtype    = "mysql";      
$CFG->dbhost    = "localhost";  
$CFG->dbname    = "moodle";     
$CFG->dbuser    = "sailomv";   
$CFG->dbpass    = "**********";   

$CFG->prefix    = "mdl_";       

$CFG->wwwroot   = "http://127.0.0.1/moodle";

$CFG->dirroot   = "";

$CFG->dataroot  = "/moodle/data";

$CFG->buggy_referer = false;

I think there should be something wrong in my config.php that I had to edit "lib/setup.php" before this.

I understood that moodle need to setup only one "config.php" file.
 

I really appreciate everyone who answers questions in this forum (instead of just asking them!) but I do need to correct you in this case, John.

Firstly, the only file you need to modify is config.php ... the database details are in there.

Secondly, I think the backslashes in the original post were probably stripped automatically by a little PHP bug which I've hopefully just fixed in Moodle.