i havent changed any cookies settings that some people have mentioned to try. I did install memcache, im not sure if that is related.
local.xml
<config>
<global>
<install>
<date><![CDATA[Fri, 17 May 2013 03:32:24 +0000]]></date>
</install>
<crypt>
<key><![CDATA[RANDOMNUMBER]]></key>
</crypt>
<disable_local_modules>false</disable_local_modules>
<resources>
<db>
<table_prefix><![CDATA[]]></table_prefix>
</db>
<default_setup>
<connection>
<host><![CDATA[localhost]]></host>
<username><![CDATA[USERNAME]]></username>
<password><![CDATA[PASSWORD]]></password>
<dbname><![CDATA[DATABASE]]></dbname>
<initStatements><![CDATA[SET NAMES utf8]]></initStatements>
<model><![CDATA[mysql4]]></model>
<type><![CDATA[pdo_mysql]]></type>
<pdoType><![CDATA[]]></pdoType>
<active>1</active>
</connection>
</default_setup>
<!-- START new connection to wordpress database !-->
<wordpress_setup>
<connection>
<host><![CDATA[localhost]]></host>
<username><![CDATA[USERNAME]]></username>
<password><![CDATA[PASSWORD]></password>
<dbname><![CDATA[DATABASE]]></dbname>
<initStatements><![CDATA[SET NAMES utf8]]></initStatements>
<model><![CDATA[mysql4]]></model>
<type><![CDATA[pdo_mysql]]></type>
<pdoType><![CDATA[]]></pdoType>
<active>1</active>
<use>0</use>
</connection>
</wordpress_setup>
<!-- FINISH new connection to wordpress database !-->
</resources>
<session_save><![CDATA[db]]></session_save>
<cache>
<backend>ewfile</backend>
<slow_backend>ewfile</slow_backend>
</cache>
</global>
<admin>
<routers>
<adminhtml>
<args>
<frontName><![CDATA[ADMIN]]></frontName>
</args>
</adminhtml>
</routers>
</admin>
</config>