Please read:
http://www.webyog.com/faq/23_36_en.html
and more general ones.
http://www.webyog.com/faq/16_66_en.html
and
http://www.webyog.com/faq/16_67_en.html
But this error 1130 can be very tricky when connecting to *nix based systems and I personally do not understand everything. I doubt if anybody does!
Also: try simply change from
MsqlHost address:
to
MsqlHost address: localhost
on the Server TAB. The point is that PHP connects from localhost, so there is no need for a DNS lookup!
Anything you could use? Could you provide more info about the server setup?