Here is the response from Godaddy Support–it appears that this is a dead issue as far as installing WordPress is concerned, and should be a warning to other customers or potential customers of Godaddy…:
Dear Nick Easton,
Thank you for contacting customer support. Due to security issues we do not allow outside access to our databases. The only way to access your database is via script from your hosting account or via the Online Manager (phpMySQLAdmin/MSSQLAdmin) interface.
