In case of HTTP tunneling a warning pops up if you enter a host name different from 'localhos' as this is the correct setting most of the time (in your case it is not so). If no error message is displayed, then the connection can be made. Have you tried to click on 'test connection' button?
This is strange! Clicking on “Test Connection..” should either show you an error message or it should show a Messagebox reporting the MySQL server version running on the remote host.
Are you able to get past the connection dialog?
Could you please try accessing the tunnelling URL from a browser and send us the results?