I accidently removed the "user" table in mysql using Phpmyadmin and now I can not access any of my databases or their contents. I now get user "denied to user: 'root@localhost' for table 'ZYZ'.

Is there anyway I can recover or add a new user table. It is not allowing me.

Thank you!

Check out section 4.3.13 in the MySQL Manual:
http://www.mysql.com/doc/en/Access_denied.html

You can use --skip-grant-tables to connect to your server and recreate entry in your user table
You can run the script mysql_installdb to recreate it too