The binary log format as implemented in MySQL 6.0 is
considerably different from that used in older versions,
especially with regard to handling of character sets,
LOAD DATA INFILE, and time zones.
As a general rule, you should set up replication only between masters and slaves running the same major versions (5.1, 5.0 or 4.1) of MySQL. If you must execute replication between different major versions, ensure that your client is at a version equal to or higher than that of the master. For example, a master of 4.1.23 and a slave of 5.0.24 should work together.
We recommend using the most recent MySQL version available because replication capabilities are continually being improved. We also recommend using the same version for both the master and the slave. We recommend upgrading masters and slaves running alpha or beta versions to new (production) versions. In many cases, replication from a newer master to an older slave will fail.
In general (but not always), slaves running MySQL 6.0.x can be used with older masters, but not the reverse. However, there are known issues with trying to replicate from a 4.0 or earlier master to a 5.1 or later slave (Bug#31240). For more information on potential issues, see Section 18.3.1, “Replication Features and Issues”.
You cannot replicate from a master that uses a newer binary log format to a slave that uses an older format (for example, from MySQL 5.0 to MySQL 4.1.) This has significant implications for upgrading replication servers, as described in Section 18.3.3, “Upgrading a Replication Setup”.
The preceding information pertains to replication compatibility at the protocol level. However, there can be other constraints, such as SQL-level compatibility issues. For example, a 6.0 master cannot replicate to a 5.1 slave if the replicated statements use SQL features available in 6.0 but not in 5.1. These and other issues are discussed in Section 18.3.1, “Replication Features and Issues”.

User Comments
Please read carefully the paragraph about new password algorithm in chapter "Replication Features and Known Problems" - this leads also to problems with the "replication user" while setting up Master with version 4.1.x and Slave with version 4.0.x - solutions can be found at section "A.2.3 Client does not support authentication protocol".
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