[MRGTB]

The best way to use Putty, is to create a folder in your ROOT directory called "backup" for example. One level above your "public_html" folder so it cannot be accessed by the public.

Then FTP your database to that folder called "backup"

Then use this path in Putty below:

mysql -u yourusername -p yourpassword < /home/yourpassword/database/databasename.sql

Then you will be promted for the database password before it is restored

Because I use vBulletin, I chmod that folder to 777 so I can download the database backup direct to that folder on the server via the admincp on my board.