old pre-4.1 authentication protocol not supported

mysql> SET @@session.old_passwords = 0;
Query OK, 0 rows affected (0.00 sec)

mysql> SELECT @@session.old_passwords, @@global.old_passwords;
+-------------------------+------------------------+
| @@session.old_passwords | @@global.old_passwords |
+-------------------------+------------------------+
|                       0 |                      1 |
+-------------------------+------------------------+
row in set (0.00 sec)

mysql> CREATE USER 'newuser'@'localhost' IDENTIFIED BY 'newpass';
Query OK, 0 rows affected (0.03 sec)

mysql> SET PASSWORD FOR 'existinguser'@'localhost' = PASSWORD('existingpass');
Query OK, 0 rows affected (0.00 sec)