1.. firstly .. you need to create a database and database user
Log on the MYSQL shell as the MYSQL root users and type
create database moodle;
2.. Then create a mysql user and grant it rights over the database
GRANT ALL on moodle TO 'moodleuser' IDENTIFIED BY 'password' ;
3.. There is bug between MYSQL 4.1 and PHP 4.x ( at least on windows )
so in the MYSQL root window type
SET PASSWORD FOR 'moodleuser' = OLD_PASSWORD('password');
Now when you launch moodle admin pages it should create the tables nicely for you.
Hope this helps
Installing and upgrading help
Creating A Moodle Database
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