you have to enable
extension=php_mysql.dll
in your php.ini
have you checked the php.ini in your apache-folder too ?
Does the php mysql access works beside Akelos? I mean, did you try any other project, or even a single php page to test mysql_connect() availability?
It definitely sounds like a non-Akelos problem.
Maybe try to reinstall a fresh Apache, or an out of the box Xampp.
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