Error at rake db:create

c:\Fedena\fedena2.1_bundle_package>c:\Ruby187\lib\ruby\gems\1.8\bin
\rake db:crea
te --trace
(in c:/Fedena/fedena2.1_bundle_package)
** Invoke db:create (first_time)
** Invoke db:load_config (first_time)
** Invoke rails_env (first_time)
** Execute rails_env
** Execute db:load_config
** Execute db:create
Couldn't create database for {"port"=>3306, "username"=>"admin",
"adapter"=>"mys
ql", "database"=>"fedena", "host"=>"127.0.0.1", "password"=>"admin"},
charset: u
tf8, collation: utf8_unicode_ci (if you set the charset manually,
make sure you
have a matching collation)

database.yml has
development:
  host: 127.0.0.1
  adapter: mysql
  database: fedena
  port: 3306
  username: admin
  password: admin

test: &test
  host: 127.0.0.1
  adapter: mysql
  database: fedena
  port: 3306
  username: admin
  password: admin

production:
  host: 127.0.0.1
  adapter: mysql
  database: fedena
  port: 3306
  username: admin
  password: admin

cucumber:
<<: *test

Using Windows 7, MySQL 5.0, Ruby 1.8.7 - p302

Someone can help? I am new to Ruby and MySQL

Thanks