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change database settings in magento ?

First thing you need to do is create a connection in your module's config.xml. It should look similar to the default_setup in your /app/etc/local.xml. Here you can specify the host to be localhost and then set a different dbname or you can specify a different host completely. I have also used a socket before which works also.

<resources>
    <new_db>
        <connection>
            <host><![CDATA[localhost]]></host>
            <username><![CDATA[db_username]]></username>
            <password><![CDATA[db_password]]></password>
            <dbname><![CDATA[db_name]]></dbname>
            <model>mysql4</model>
            <type>pdo_mysql</type>
            <active>1</active>
        </connection>
    </new_db>
</resources>


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