It is the wrong password so since you are using XAMPP you can go to the XAMPP main page then select phpMyAdmin then without selecting a database go to priviliges and you should see root, pma and any other users that have been granted priviliges. On this screen you can edit existing users leave root and pma alone, just add one for yourself and then give it a password, or if you have forgotten the password then delete the existing user (not root or pma) and then re enter them with a new password.
I know that there is a warning about root not having a password (but this is your own PC) so do not add a password for root unless you know that you will also have to edit the phpmyadmin/config.inc file because that is where it looks for a username and password and be default this file is set up with root with no password.
You might want to try to change your Config.php to something like this in the meantime.
<?php
$host="localhost";
$user="root";
$pass="";
$connect =mysql_connect($host,$user,$pass)
or die("Could not connect to server, MySQL said: ".mysql_error());
?>