Behavior:
When using MySQL 5.1 (and not DocuWare Internal Database) and it has been installed with a standard MySQL user who has no global privileges for the database server, setup will return the misleading error that the version of the database server is incorrect.
Solution:
You can use MySQL command line to set these privileges in Start menu of MySQL Logon to the MySQL database in command line (You have to set the specific user, password and server name in the SQL syntax):
MySQL>
GRANT ALL PRIVILEGES ON *.* TO 'user'@'%' IDENTIFIED BY 'password' WITH GRANT OPTION;
GRANT ALL PRIVILEGES ON *.* TO 'user'@'localhost' IDENTIFIED BY 'password' WITH GRANT OPTION;
GRANT ALL PRIVILEGES ON *.* TO 'user'@'servername' IDENTIFIED BY 'password' WITH GRANT OPTION;