Can't create/write to file '/usr/local/mysql/data/

Hello there,

I am new to ruby on rails, and have followed a tutorial to get set up
using mysql.

THis is now running, so using terminal, my next steps are to create a
database, and a table for the database.

The dsatabase (addressbook) was successfully set up.

However, I'm getting an error when i try and create the table:

Can't create/write to file '/usr/local/mysql/data/
addressbook_development/addresses.MYI' (Errcode: 2)

Does anyone know how i set the permissions to allow for it to read
this directory and allow the sql to generate the table?

Many Thanks in advance!

Cheers,