ERROR 2003 (HY000): Can't connect to MySQL server (111)

This question is related to the following questions:

• Can't connect to MySQL server error 111
• Trying to connect to remote MySQL host (error 2003)

I am configuring a new MySQL (5.1) server on my local machine. I need to provide remote access to the database. I did the following steps:

1. Comment bind-address in my.cnf:

   # bind-address      = 192.168.1.3
   

2. Grant privileges:

   GRANT ALL PRIVILEGES ON *.* TO 'nickruiz'@'%' IDENTIFIED BY PASSWORD 'xxxx';
   

3. Set port forwarding on router (TCP and UDP, port 3306, 192.168.1.3)

4. Configure iptables for firewall

   sudo iptables -I INPUT -p udp --dport 3306 -j ACCEPT
   
   sudo iptables -I INPUT -p tcp --dport 3306 --syn -j ACCEPT
   
   sudo iptables-save
   

5. Restart mysql server sudo /etc/init.d/mysql restart

When testing, I get the following:

LAN:

mysql -h 192.168.1.3 -u nickruiz -p
Welcome to the MySQL monitor.  Commands end with ; or \g.
Your MySQL connection id is 95
Server version: 5.1.63-0ubuntu0.11.04.1 (Ubuntu)

Remote:

mysql -h 1xx.xx.4.136 -u nickruiz -p
ERROR 2003 (HY000): Can't connect to MySQL server on '1xx.xx.4.136' (111)

Clearly there's something wrong that's preventing me from being able to use my global IP address.

Notes:

• I've tried testing the remote connection on the same machine and also via SSH from a remote machine.
• I'm not sure if my ISP has given me a static IP.

Any ideas?

Update: telnet doesn't seem to be working.

telnet 192.168.1.3 3306
Trying 192.168.1.3...
Connected to 192.168.1.3.
Escape character is '^]'.
E
5.1.63-0ubuntu0.11.04.1,0g8!:@pX;]DyY0#\)SIConnection closed by foreign host.