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$ sudo apt-get install mysql-server mysql-client
... output omitted ...
$ sudo mysqladmin -u root -h localhost password 'password'
... output omitted ...
$ mysql -u root -p
... output omitted ...
mysql> GRANT ALL PRIVILEGES ON *.* TO 'root'@'your_host_name' IDENTIFIED BY "password";
Query OK, 0 rows affected (0.00 sec)

mysql> FLUSH PRIVILEGES;
Query OK, 0 rows affected (0.00 sec)

mysql> exit
Bye
$ 

# Enabling remote connections #

$ sudo vi /etc/mysql/my.cnf

Change: 
bind-address    = 127.0.0.1

To:
bind-address    = <your ip address>

$ sudo /sbin/iptables -A INPUT -i eth0 -p tcp --destination-port 3306 -j ACCEPT
$ sudo iptables-save
$ sudo iptables-apply
$ sudo service mysql restart





#
# setting up client host for rails with bundler
#
$ sudo apt-get install mysql-client # if different host
$ sudo apt-get install libmysqlclient-dev

... ensure that mysql is specified in your Gemfile ...

$ bundle config build.mysql --with-mysql-config=/usr/bin/mysql_config
$ bundle install