Error: 'Access Denied For User: 'root@localhost' (Using Password: NO)'

I've installed MySQL 4.0.26 on OSX 10.3.9 client version using the standard darwin 7.9.0 PKG. Installation seemed to go fine but I can only access Mysql with
urs/local/mysql/bin/mysql test

To my knowledge I never sent a root or user password.
When I come to try and set a password or create a database I am asked for my password.
When I try and enter it the imput is frozen and the only keystroke that will work is 'enter' then I get a error message that tells me that it is the incorrect password.
I have tried all of the different login and password reset commands I can find but to no avail.