Multi-DB error message headers already sent

new WP 3.5 multisite subdomain installation - no plugins, Twenty Twelve theme, one subsite - no content.

I just launched Multi-DB and move-blogs.php showed status "table in new db" after refresh.

However,
Top of the page In the Network and Site Dashboards I'm getting: Warning: mysql_set_charset() expects parameter 2 to be resource, boolean given in /home/xxx/public_html/wp-includes/wp-db.php on line 650

Warning: Cannot modify header information - headers already sent by (output started at /home/xxx/public_html/wp-includes/wp-db.php:650) in /home/xxx/public_html/wp-includes/option.php on line 568

Warning: Cannot modify header information - headers already sent by (output started at /home/xxx/public_html/wp-includes/wp-db.php:650) in /home/xxx/public_html/wp-includes/option.php on line 569

and on the live pages
Warning: mysql_set_charset() expects parameter 2 to be resource, boolean given in /home/xxx/public_html/wp-includes/wp-db.php on line 650

I've read other threads on similar errors but I am hesitant to change the IP's etc if the move-blogs.php showed that the tables were setup okay.

db-conf.php = http://pastebin.com/h5hB8QVV

Please advise