MySQL 4.1.20 is the latest stable version in the Gentoo repository that's why. To use one of the testing versions, currently 4.1.21 and 5.0.22, edit /etc/portage/package.keywords. Add this...
Code:
=dev-db/mysql-5.0.22 ~amd64
Then re-emerge mysql...
That should give you mysql-5.0.22.
You'll need to use the correct testing branch. That is, replace amd64 with your processor type. The ~ means use testing. Also, once 5.0.22 moves to the stable branch, you'll need to remove that line from package.keywords. Until then, updates and recompilations with new USE flags will continue to use 5.0.22.