This would not be a CHMOD type of permission problem as the password is never written to a file. It may, however, be a mySQL permission problem. I noticed that your server control panel does not allow for you to set mySQL user permissions so that may be part of the problem. The only way to know for certain is to login to your database via phpMyAdmin, go to the SConfig table, and record what the password string is in the password column. Then, from the vShare admin, change your password. Once you do that, go back to the SConfig table and check to see if the string has changed or not. If it did, then your permissions are correct but something else is causing your login problems. If it didn't, then your permissions are not correct and you will have to login to your database as root (assuming you know your mySQL root password), select the user that the database is using, and fix their permissions.
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