EEEEEK!! (worthy of at least two excalamtion marks)
Never ever 777 your mysql dir. That's like telling the world "please come in and delete my database"
The only file you may have to change access rights for is the mysql.sock file. The rest must stay protected.
Like Mark said, make sure the paths are set correctly so mysqld creates the mysql.sock where the mysql client expects it to be.
On a side note, making sure Mysqld actually runs is also a good idea.