SOLVED !!
Simply, Instead of using "Microsoft SQL Server (SqlClient)" as The DataSource
Use ".NET Framework Data Provider for MySQL"
Use your Credentials for the MySQL Connection (ServerName,User,Password,DB-Optional)
It should work now.
I've used ADO Entity DATA Model Wizard for My Project and configure .Net as My DataSource.
If you have the "error 40..." in different occausion verify your DataSource to the right one.
I tried like most of you to look for Firewall settings, server settings,
but it was simple than i thought, so check it out...
For download --->.NET Framework Data Provider for MySQL as your data source/provider:
http://dev.mysql.com/get/Downloads/Connector-Net/mysql-connector-net-6.7.4.msi
It worked for me !