title: rake db:create - collation issues
body: <pre><code>kratos-iii:railsproj zachinglis$ rake db:create
  (in /Users/zachinglis/Sites/rails/railsproj)
  Couldn't create database for {"adapter"=&gt;"mysql", "host"=&gt;"localhost", "username"=&gt;"root", "password"=&gt;nil, "database"=&gt;"railsproj_development"}, charset: utf8, collation: utf8_general_ci (if you set the charset manually, make sure you have a matching collation)
  </code></pre>
  
  <p>I had no issues using Sequel Pro and even creating said database. </p>
  
  <p>How do I resolve this?
  Having an empty password never gave me issues before. And I really doubt thats it.</p>