Based on our chat conversation, here is what was discussed

• Server1 is Stand Alone
• Server2 is a Master
• Server3 is a Slave to Server2

This implies that binary logging is enabled in Server2.

To Make Server1 a Master of Server2, perform the following:

STEP 01 : On Server2, add this to /etc/my.cnf

[mysqld]
log-slave-updates

STEP 02 : On Server3, run STOP SLAVE;

STEP 03 : On Server2, run service mysql restart

STEP 04 : On Server3, run START SLAVE;

STEP 06 : On Server1, add this to /etc/my.cnf

[mysqld]
log-bin=mysql-bin

STEP 07 : On Server1, run service mysql restart

STEP 08 : Set Replication From Server1 to Server2

See Clarification about master slave configuration in mysql

OPTIONAL

Once you have MySQL Replication Going From Server1 to Server2 to Server3, your can properly load all data into all three MySQL Instances by doing the following on Server1:

mysqldump -u... -p... --all-databases --routines --triggers > mysqldata.sql
mysql -u... -p... < mysqldata.sql

This will do three(3) things

• Repopulate everything into Server1
• MySQL Replication will handle populating Server2 from Server1
• MySQL Replication will handle populating Server3 from Server2

Since your data is 50MB in total, this should be execute very quickly.

Going by your question, I will like to review what I believe you did thus far:

• You stopped mysql on the Master
• You copied Master's /var/lib/mysql to the Slave's /var/lib/mysql
• I surmise the binlogs on the Master were copied as well

Look at the Slave's last binlog. From the question, it should be

• mydbm1-bin.008524
• Filesize 1330529

Believe it or not, you have to do a few things:

1) On the Master, create a replication user like this:

GRANT REPLICATION SLAVE,REPLICATION CLIENT
ON *.* TO replicator@'%'
IDENTIFIED BY 'r3plic4t0R';

2) Make /var/lib/mysql on the Slave owned by mysql user

chown -R mysql:mysql /var/lib/mysql

3) Make sure Master's server_id is explicitly set in my.cnf

[mysqld]
server_id = 1

4) Make sure Slave's server_id is explicitly set in my.cnf

[mysqld]
server_id = 2

5) Startup mysql on the Slave

service mysql start

6) Setup replication by running this on the Slave

CHANGE MASTER TO
MASTER_HOST='IPAddressOfMaster',
MASTER_PORT=3306,
MASTER_USER='replicator',
MASTER_PASSWORD='r3plic4t0R',
MASTER_LOG_FILE='mydbm1-bin.008524',
MASTER_LOG_POS=1330529;
START SLAVE;
SELECT SLEEP(5);
SHOW SLAVE STATUS\G

You will see something like this:

mysql> show slave status\G
*************************** 1. row ***************************
             Slave_IO_State: Waiting for master to send event
                Master_Host: 10.48.20.253
                Master_User: replicant
                Master_Port: 3306
              Connect_Retry: 60
            Master_Log_File: mysql-bin.000254
        Read_Master_Log_Pos: 858190247
             Relay_Log_File: relay-bin.066069
              Relay_Log_Pos: 873918
      Relay_Master_Log_File: mysql-bin.000254
           Slave_IO_Running: Yes
          Slave_SQL_Running: Yes
            Replicate_Do_DB:
        Replicate_Ignore_DB:
         Replicate_Do_Table:
     Replicate_Ignore_Table:
    Replicate_Wild_Do_Table:
Replicate_Wild_Ignore_Table:
                 Last_Errno: 0
                 Last_Error:
               Skip_Counter: 0
        Exec_Master_Log_Pos: 858190247
            Relay_Log_Space: 873772
            Until_Condition: None
             Until_Log_File:
              Until_Log_Pos: 0
         Master_SSL_Allowed: No
         Master_SSL_CA_File:
         Master_SSL_CA_Path:
            Master_SSL_Cert:
          Master_SSL_Cipher:
             Master_SSL_Key:
      Seconds_Behind_Master: 0
1 row in set (0.00 sec)

If Slave_IO_Running and Slave_SQL_Running are both Yes, CONGRATULATIONS !!!

I already answered a post back on Feb 06, 2012 ( How to setup replication(Master/slave) in MySQL 5.5.20? ) with essentially the same steps.

I wanted to add additional posts I made for setting up Circular Replication should you decide to setup the two DB servers as Master/Master

• Sep 24, 2012 : Setting up MySQL circular replication in existing replication topology?
• May 07, 2012 : Setting Circular Replication in mysql