tenta configurar assim

dataSource {
pooled = true
//driverClassName = "org.hsqldb.jdbcDriver"
driverClassName = "com.mysql.jdbc.Driver"
username = "root"
password = "senha"
//username = "sa"
//password = ""
}
hibernate {
cache.use_second_level_cache=true
cache.use_query_cache=true
cache.provider_class='net.sf.ehcache.hibernate.EhCacheProvider'
}
// environment specific settings
environments {
development {
dataSource {
dbCreate = "update" // one of 'create', 'create-drop','update'
//url = "jdbc:hsqldb:mem:devDB"
//dbCreate = "update"
url = "jdbc:mysql://127.0.0.1/seu banco"


}
}
test {
dataSource {
dbCreate = "update"
//url = "jdbc:hsqldb:mem:testDb"
url = "jdbc:mysql://127.0.0.1/seu banco"
}
}
production {
dataSource {
dbCreate = "update"
//url = "jdbc:hsqldb:file:prodDb;shutdown=true"
url = "jdbc:mysql://127.0.0.1/seu banco"
}
}
}

esse é o jar que esta no meu projeto

mysql-connector-java-5.1.12-bin

um link para o JAR do mySql acima é:

http://botejo.googlecode.com/files/mysql-connector-java-5.1.12-bin.jar

Tibério, você disse:

sendo que o .jar já tá na pasta Bibliotecas

quer dizer que teu jar tá na pasta "lib" do projeto?

Ivgsilva, deu errado, eu já tinha feito uma configuração parecida.
E Jo?e, sim, o .jar já tá na pasta lib do projeto, por ctrl + c mesmo.
Se alguém puder ajudar, eu realmente agradeço

Error 2012-04-18 13:08:34,921 [pool-7-thread-1] ERROR context.GrailsContextLoader  - Error executing bootstraps: Error creating bean with name 'transactionManagerPostProcessor': Initialization of bean failed; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'transactionManager': Cannot resolve reference to bean 'sessionFactory' while setting bean property 'sessionFactory'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'sessionFactory': Cannot resolve reference to bean 'hibernateProperties' while setting bean property 'hibernateProperties'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'hibernateProperties': Cannot resolve reference to bean 'dialectDetector' while setting bean property 'properties' with key [hibernate.dialect]; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'dialectDetector': Invocation of init method failed; nested exception is org.springframework.jdbc.support.MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
Message: Error creating bean with name 'transactionManagerPostProcessor': Initialization of bean failed; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'transactionManager': Cannot resolve reference to bean 'sessionFactory' while setting bean property 'sessionFactory'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'sessionFactory': Cannot resolve reference to bean 'hibernateProperties' while setting bean property 'hibernateProperties'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'hibernateProperties': Cannot resolve reference to bean 'dialectDetector' while setting bean property 'properties' with key [hibernate.dialect]; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'dialectDetector': Invocation of init method failed; nested exception is org.springframework.jdbc.support.MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
    Line | Method
->>  334 | innerRun  in java.util.concurrent.FutureTask$Sync
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    166 | run       in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run       in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run . . . in java.lang.Thread

Caused by BeanCreationException: Error creating bean with name 'transactionManager': Cannot resolve reference to bean 'sessionFactory' while setting bean property 'sessionFactory'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'sessionFactory': Cannot resolve reference to bean 'hibernateProperties' while setting bean property 'hibernateProperties'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'hibernateProperties': Cannot resolve reference to bean 'dialectDetector' while setting bean property 'properties' with key [hibernate.dialect]; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'dialectDetector': Invocation of init method failed; nested exception is org.springframework.jdbc.support.MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
->>  334 | innerRun  in java.util.concurrent.FutureTask$Sync
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    166 | run       in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run       in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run . . . in java.lang.Thread

Caused by BeanCreationException: Error creating bean with name 'sessionFactory': Cannot resolve reference to bean 'hibernateProperties' while setting bean property 'hibernateProperties'; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'hibernateProperties': Cannot resolve reference to bean 'dialectDetector' while setting bean property 'properties' with key [hibernate.dialect]; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'dialectDetector': Invocation of init method failed; nested exception is org.springframework.jdbc.support.MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
->>  334 | innerRun  in java.util.concurrent.FutureTask$Sync
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    166 | run       in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run       in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run . . . in java.lang.Thread

Caused by BeanCreationException: Error creating bean with name 'hibernateProperties': Cannot resolve reference to bean 'dialectDetector' while setting bean property 'properties' with key [hibernate.dialect]; nested exception is org.springframework.beans.factory.BeanCreationException: Error creating bean with name 'dialectDetector': Invocation of init method failed; nested exception is org.springframework.jdbc.support.MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
->>  334 | innerRun  in java.util.concurrent.FutureTask$Sync
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    166 | run       in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run       in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run . . . in java.lang.Thread

Caused by BeanCreationException: Error creating bean with name 'dialectDetector': Invocation of init method failed; nested exception is org.springframework.jdbc.support.MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
->>  334 | innerRun  in java.util.concurrent.FutureTask$Sync
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    166 | run       in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run       in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run . . . in java.lang.Thread

Caused by MetaDataAccessException: Error while extracting DatabaseMetaData; nested exception is org.apache.commons.dbcp.SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
->>  334 | innerRun  in java.util.concurrent.FutureTask$Sync
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    166 | run       in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run       in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run . . . in java.lang.Thread

Caused by SQLNestedException: Cannot load JDBC driver class 'com.mysql.jdbc.Driver'
->> 1429 | createConnectionFactory in org.apache.commons.dbcp.BasicDataSource
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|   1371 | createDataSource in     ''
|   1044 | getConnection in     ''
|    334 | innerRun  in java.util.concurrent.FutureTask$Sync
|    166 | run . . . in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run . . . in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run       in java.lang.Thread

Caused by ClassNotFoundException: com.mysql.jdbc.Driver
->>  217 | run       in java.net.URLClassLoader$1
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 
|    205 | findClass in java.net.URLClassLoader
|    321 | loadClass in java.lang.ClassLoader
|    266 | loadClass in     ''
|   1420 | createConnectionFactory in org.apache.commons.dbcp.BasicDataSource
|   1371 | createDataSource in     ''
|   1044 | getConnection in     ''
|    334 | innerRun  in java.util.concurrent.FutureTask$Sync
|    166 | run . . . in java.util.concurrent.FutureTask
|   1110 | runWorker in java.util.concurrent.ThreadPoolExecutor
|    603 | run . . . in java.util.concurrent.ThreadPoolExecutor$Worker
^    679 | run       in java.lang.Thread

Ah, consegui, simplesmente adicionei a dependencia no BuildConfig do .jar, mas eu não sei onde ele botou esse .jar quando ele faz o download, mas vlw de qualquer jeito