There are two versions of this driver: 32 and 64 bit. The 64 bit version does not come with an installer from mysql.. and try as I might I can't get it to install. The idea is that you unzip the package, command line to the folder as administrator and run 'install 0'. But it fails..
On the plus side the 32 bit version does come with an installer and installs fine. It won't appear in the ODBC panel but you can still use it. I'm using Visual Studio 2005 to develop with still and it's a simple case of loading up your project, selecting the project's properties and select to build for x86 machines only. On a debug run you'll find the mysql driver is picked up and used without fuss.
If anyone has a solution for the 64 bit driver I'm all ears... and so would the mysql forum - there doesn't appear to be much interest in it.
Here's one nice resource on the matter and I hope he can provide a little more info on his method.