Create users : with password

[Mike Mapsnac]

I spend some time to figure how to add users with passwords, but have 
problem with following:

################################################
Adding user with password: PROBLEM
################################################
When I insert users to database:
insert into user values('localhost','test', 
password('123456'),'Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y');
and specy the password , I cannot login t the database

[EMAIL PROTECTED] mike]# mysql -h localhost -u test -p
Enter password:
ERROR 1045: Access denied for user: '[EMAIL PROTECTED]' (Using password: YES)
################################################
Adding user to database with no password : NO PROBLEMS
################################################
But when I create user without password I have no problems:
insert into user values('localhost','test', 
'','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y','Y');

[EMAIL PROTECTED] mike]# mysql -h localhost -u test1
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 15 to server version: 3.23.58
Type 'help;' or '\h' for help. Type '\c' to clear the buffer.

mysql>

Any ideas what I'm doing wrong?

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