Bug with observers and rake db:create

Hi List,

I've come across a circular dependency problem when doing db:create
when you have an observer, and your models set up in a certain way.

There's a ticket with a fuller description here:

I'm happy to work on this, but my questions to anyone who knows is
this: where should I start with adding a test for this? I've poked
around the test suite and can't seem to find where it would fit in.

Pointers appreciated.