kratos-iii:railsproj zachinglis$ rake db:create
(in /Users/zachinglis/Sites/rails/railsproj)
Couldn\'t create database for {\"adapter\"=>\"mysql\", \"host\"=>\
I just encountered this as well on a fresh Snow Leopard install.
I had another project that created the databases without issue, but my primary project would give the errors you described. After poking around, the only difference was the former specified a socket, whereas the failing project (and yours too) uses a host.
That is to say, this database.yml causes the problem:
development:
adapter: mysql
database: fanvsfan_development
username: root
password:
host: localhost
But this works:
development:
adapter: mysql
database: fanvsfan_development
username: root
password:
socket: /tmp/mysql.sock
I'm unsure what the actual difference is, but this seems like a workaround.