mysql rake functions failing

im new to mac and ruby but have been through some tutorials using sqlite ive downloaded a plugin for geolocation and it needs mysql for advanced functionality however whenever i try to run the rake commads with mysql adapter, i get errors

i created the ruby app using the -d mysql command my database.yml looks as follows

development:   adapter: mysql   encoding: utf8   reconnect: false   database: geokit_v1   pool: 5   username: root   password: **** # hiddne root password   socket: /tmp/mysql.sock

rake db:create yields

Couldn't create database for {"reconnect"=>false, "encoding"=>"utf8", "username"=>"root", "adapter"=>"mysql", "database"=>"geokit_v1", "pool"=>5, "password"=>'***', "socket"=>"/tmp/mysql.sock"}, charset: utf8, collation: utf8_general_ci (if you set the charset manually, make sure you have a matching collation)

some posts about this topic say the charset may be misleading yet in mysql if i see this <code>

i did not get a screen asking for default character set the instructions ive found to chang it (my.cnf , \C) do not seem to take using the \C command while logged into mysql seem to change some of the character sets but if i \q then restart my mysl -u root connection, when i run show variables like 'char%'; theyre all back to latin1

show how do i change it to utf8 for good?

I use the MySQL Administrator gui, Options -> Advanced.

http://dev.mysql.com/downloads/gui-tools/5.0.html

i was able to set default charset to utf8...still getting error running rake db:create

please see full detail of issues here:

http://railsforum.com/viewtopic.php?pid=113115

thanks