Slightly OT - MySQL connect

Hello all, I've been unable to connect to MySQL from a client on a remote system (both systems behind the firewall) using a username/pw set up locally using the GRANT ALL ON *.* TO user@% identified by "password" command. I know this is a bog security hole, but I'm just trying to connect from anywhere else but locally, which i can do. When trying to connect, I get the "host malacoda.local is not allowed to connect to this MySQL server". Malacoda.local being the remote system that is set up in the local hosts file. Is there any other place, port setting, etc. I need to configure to get this darned thing to work? Best, Peter Bethke