The "mysql" in /etc/init.d is used to start the mysql daemon (and stop, reload and report the status of), not reset your password (or enter mysql commands or anything else).
Is the mysql daemon running?
Try '/etc/init.d/mysql status" to see.
If you need to reset your root mysql password, you'll need to stop the daemon, then run it stand-alone and issue an update command to reset the password. Instructions are here
(assuming you've got mysql 5).