It looks like your mysql database already has a 'books' table. So either manually reset the database (and the schema) or run the appropriate rake tasks to undo what you've done...
If you don't care about any of the data in there you could do
rake db:drop db:create db:migrate
to get back to this point... type "rake -T db" to see your other options
(in C:/Murali Rubby/demo/library)
rake aborted!
Mysql::Error: Specified key was too long; max key length is 767 bytes:
CREATE UN
IQUE INDEX `unique_schema_migrations` ON `schema_migrations` (`version`)