Can't connect to mysql remotely

First, let me tell you what I have done:

edited my.cnf and commented out bind-address (I also tried binding to 0.0.0.0, and to the server's ip). No bueno.

SHOW GRANTS displays GRANT PROXY ON ''@'' TO 'root'@'%' WITH GRANT OPTION

netstat -tln reports: tcp 0 0 0.0.0.0:3306 0.0.0.0:* LISTEN

I can ssh into the server and bind port 3306 to 127.0.0.1:3306 and access using my credentials, but I can't use sqlyog to login to mysql remotely.

I've done service restart before, after each change. Flushed permissions. I paid a guy in India to try...that no work.

Here's my iptables -L printout. I've tried iptables -A INPUT -i eth0 -p tcp -m tcp --dport 3306 -j ACCEPT to open the port too...

So I'm hoping that I've overlooked something here, or that someone can point me toward what I should be looking at.

Thanks!