Resolution
To finish MySQL server update from 3.23.58 to 4.1.x version you have to install Mysql 4.1.x RPMs first and then perform the following command to update mysql database corresponding to the new tables format./usr/bin/mysql_fix_privilege_tables --user=admin --password=`cat /etc/psa/.psa.shadow`Also, you may encounter the following issue after MySQL upgrade.
http://faq.swsoft.com/article_41_742_en.html