I am experimenting with creating new users, granting them privileges and revoking them.

Here is what I am trying to do:
create a new user account for a user with username: 'johnsmith' and password: 'johnpassword'.
Allow that user to right to perform the following commands on database 'dbname': select, update, insert

After reading the manual, here is what I tried:
grant select, update, insert on dbname.* to 'johnsmith' identified by password 'johnpassword';

this didn't work because I got an error saying that:
"Password hash should be a 41-digit hexadecimal number"

could someone show me how I can create a new user account and provide that use with the privileges to select, update, insert?

thanks in advance