I tried to backup the database from my mysql server.
I am using MYSQL 5.5.
I used the following Command to backup the database.
$ mysqldump -root -admin project > projectbackup.sql
My username: root, Password : admin, database name : project
But it showing the following error. as like as the following screenshot.

try with this in command prompt not in mysql prompt
mysqldump -u root -p admin project > projectbackup.sql
Docs
From what I remember, mysqldump is a program, not a MySQL command. Run it from the Windows command prompt instead of the MySQL prompt. Also, don't include the $ dollar sign.
Also you'll need to include the username and password with --user=Your_user_name_here --password=Your_password_here
Documented usage here: http://dev.mysql.com/doc/refman/5.5/en/mysqldump.html
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