Remote MySQL Server issue in CentOS

[GinnyBhullar]

Hi ! I am using CentOS 5, on which I have mysqlserver running.. The issue is I have setup mysql server to be accessed remotely by editing my.cnf.
I have added following two lines to my.cnf:

bind_ipaddress 192.168.1.2
#skip_networking

Now Database is available remotely. like following PHP script can access the db from remote:

<?php
mysql_connect("192.168.1.2","user","password") or die(mysql_error);
?>

But the problem is if I execute above script on the server, it doesn't connect to server and gives an error to unable to connect to 192.168.1.2.
I have given all the permissions to dbuser to access from any host.. by issuing the following commands:

GRANT ALL ON database.* TO user@'localhost' IDENTIFIED BY 'PASSWORD';
GRANT ALL ON database.* TO user@'127.0.0.1' IDENTIFIED BY 'PASSWORD';
GRANT ALL ON database.* TO user@'192.168.1.2' IDENTIFIED BY 'PASSWORD';

but still it is not working..
Can somebody suggest me the way out?

[Rubberman]

Have you tried connecting to "localhost" or "127.0.0.1"?