I recently moved a magento website for a friend. The old local.xml pointed to the old server IP address so I corrected this on the new site to point to localhost. Everything worked fine and seem to be using the DB on the new server as the account on the old server was suspended.
1 day later the old server was taken offline and the database no longer works, seems it was still pointing to the old server. I've cleared the cache, made sure the compiler was turned off and deleted the sessions with no luck.
Here the local.xml to provide any aid
<connection>
<host><![CDATA[localhost]]></host>
<username><![CDATA[<DB User>]]></username>
<password><![CDATA[<password>]]></password>
<dbname><![CDATA[<DB Name>]]></dbname>
<initStatements><![CDATA[SET NAMES utf8]]></initStatements>
<model><![CDATA[mysql4]]></model>
<type><![CDATA[pdo_mysql]]></type>
<pdoType><![CDATA[]]></pdoType>
<active>1</active>
</connection>
var/cache
folder of Magento. If that's not writeable Magento will use/tmp
folder of the system./tmp
in the magento instance. Look for it in the file system./tmp
it's an absolute path, not relative to your install.