Hi All,
This is embarrassing; I dont know how the problem got solved, honestly. I re-installed MySQL and did the configuration for the d/b instance again. The only difference from the original installation was that I configured the port number to the default 3306. The first time I had set it to 3307 because for some reason 3306 was said to be already in use.
So once I had created the 'alfresco' d/b with a user of the same name with all grant privileges (I had run the db_setup.sql) file command wise on the mysql prompt), I ran Alfresco and it started working.
So most probably it was the port number issue, although I can't be sure.
Hope this helps other newcomers like me.
Thanks all,
Rohit Lal