I\'m using Ruby1.9 and Rails 2.3.4 and I have mysql-ruby (2.8.1) gem installed.
when I try rake db:create I get the following
Couldn\'t create
You will check out your usrname and password whether its correct or not. Also you will check out whether your mysql server is working correctly. and also some time found the problem of socket path most of the time its is inside /tmp directory but sometimes it may not be. so try with with the default path.
Hopefully if you will try this it will work for you.