Create a mysql slave database from master database
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&gt; 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