MYSql admin..creating users??

MYSQL
A little bit of knowing of MySql setup. I was going through one of these administration tutorials. this is what it says......
'A Real-Life example
Suppose we want to allow user 'dario' to access the server via hosts 'localhost' and 'www.devshed.com', which lies on the 'dv1' host. He wants to access the database 'pasta' strictly from 'localhost', but he wants to access the database 'chicken' from both hosts. Finally, he wants to use the password 'mamamia'.

Step 1: Set up the host table (assuming it has not yet been set up)
The host table is of considerable importance when administering larger networks, yet it
needs to be configured for every server. Assuming you have just one server, you will
have to insert just two hostnames, the localhost, and your server name. Otherwise, you will have to list each server that you would like to give access to the MySQL server.

$ mysql mysql
mysql> insert into ->host(host,db,Select_priv,Insert_priv,Update_priv,
-> Delete_priv,Create_priv,Drop_priv)
-> values('localhost','%','Y', 'Y', 'Y', 'Y', 'Y', 'Y');

mysql> insert into
->host(host,db,Select_priv,Insert_priv,Update_priv,
->Delete_priv,Create_priv,Drop_priv)
->values('dv1','%','Y', 'Y', 'Y', 'Y', 'Y', 'Y');
'

My System is a standalone system -acting as both client-server and only single user 'root'
My question is do i have to make another user for the system?? or is it possible to make another user just for mysql working under root. ie. there will be 2 users for MySQL working under system 'root'

I hope i am clear enough......
thanx..