It looks like mpd is not actually running. If you run, "ps aux | grep mpd" you should get some information about the running instance of mpd. You'll even get more than one if mpd is updating its library. If you get nothing, mpd is not running.
So if it's not running, try, "sudo /etc/init.d/mpd start" (hopefully sudo is there. Run it as root, regardless) If mpd is having trouble starting, it should give you a clue as to why.
You could also take a look at the log by, "less /var/log/mpd/mpd.log" any clues there? (q to quit)
There are various mixers you can set in the /etc/mpd.conf file. You may have the wrong one set for your hardware.
Googling for your error gives many results, including commenting out the bind address in the cfg file, and ensuring that the IP address is used instead of "localhost."
Just a few ideas. Post your logs, and the output from the other commands here if you are still having problems.