Question : What is my password for "Connect to localhost" prompt?

Recently installed php, Apache, mySQL, phpMyAdmin on my Windows XP machine.  When I bring up localhost:8080/index.php, I get a prompt that looks similar to a Windows prompt, that says the following:
"The server localhost at phpMyAdmin localhost:8080 requires a username and password.
Warning: This server is requesting that your username and password be sent in an insecure manner (basic authentication without a secure connection)."
 
config.inc.php had following lines by default:
$cfg['Servers'][$i]['auth_type'] = 'cookie';
/* Server parameters */
$cfg['Servers'][$i]['host'] = 'localhost:8080';
$cfg['Servers'][$i]['connect_type'] = 'tcp';
$cfg['Servers'][$i]['compress'] = false;
/* Select mysqli if your server has it */
$cfg['Servers'][$i]['extension'] = 'mysql';

From reading online forumns, I've changed 'cookie' to 'http', and added the following lines:
$cfg['Servers'][$i]['user'] = 'MyLastName';
$cfg['Servers'][$i]['password'] = 'MyPassword'; // which is the same as my mySQL password

When I visit http://localhost:8080/index.php, it used to first take me to the phpmyadmin login web page, then after I entered something here, it would take me to the Windows-looking prompt described above.  Now (I think since I made the changes above), it takes me directly to the prompt (not seeing the phpMyadmin login webpage anymore).  

Thanks for any suggestions!

Answer : What is my password for "Connect to localhost" prompt?

Ad.2. port 8080 is ok, but for your web server, not mysql server. In phpMyAdmin config you have to define your mysql host, so you should write just 'localhost' without any port. If your mysql installation is on different then default port indeed (I doubt), you should add another option to this config file: $cfg['Servers'][$i]['port'] = '8080'; but I really don't think you have mysql configured to run on 8080 (as this is the port your apache runs).

First fix this one, only then try to login.