Help! MySQL Workbench Not Working!! Connection via localhost? (2 replies)

HELP! I have spent the past 2 days trying to work out an issue with using MySQL workbench with my local development server.

Configuration:
- MySQL Server 5.5 on localhost:3306
- Windows 7 64bit Professional

What works:
- MySQL Server windows service
- MySQL Server 5.5 via command line
- MySQL Workbench starts up

Problem Step Replication:
1. Attempt connection, prompts for user/pass on mysql@localhost:3306
2. Enter ANY username or password (empty, root, or any other)

Resuling error message claims that it cannot connect to the server with error message:
"Your connection attempt failed for user '' from your host to server at localhost:3306: Access denied for user 'ODBC'@'localhost' (using password: YES)"

What I've noticed:
- Data Sources (ODBC) in Control Panel > Administrative Tools does not display ANY MySQL ODBC Connectors (except when installed during troubleshooting)
- No mysql errors beyond what it says about not using valid password

What I've tried:
- Researching documentation, forums, stackoverflow, and of course: Google.
- Removing/Reinstalling MySQL Workbench using both plain zip and msi installer
- Removing/Reinstalling MySQL Server using both plain zip and msi installer
- Installing/removing MySQL ODBC Connector using both plain zip and msi installer
- Manually selecting different my.ini

I have a hunch that it may be looking at the wrong socket or driver or configuration and is intercepting the tcp connection.

Reformatting/reinstalling Windows is out of the question. I need assistance with diagnosing and tracing back the problem via Workbench's connection sources/steps. Any logs/configuration files to look at/etc. would be immensely helpful!