Check the syntax for CREATE DATABASE: http://dev.mysql.com/doc/refman/5.0/en/create-database.html
CREATE {DATABASE | SCHEMA} [IF NOT
EXISTS] db_name
[create_specification] ...
create_specification:
[DEFAULT] CHARACTER SET [=] charset_name | [DEFAULT] COLLATE [=]
collation_name
You can change the default storage engine on starting up mysql, or during your session. See http://dev.mysql.com/doc/refman/5.0/en/storage-engines.html
If you omit the ENGINE or TYPE option,
the default storage engine is used.
Normally, this is MyISAM, but you can
change it by using the
--default-storage-engine or --default-table-type server startup option, or by setting the
default-storage-engine or
default-table-type option in the
my.cnf configuration file.
You can set the default storage engine
to be used during the current session
by setting the storage_engine or
table_type variable:
SET storage_engine=MYISAM; SET
table_type=BDB;
When MySQL is installed on Windows
using the MySQL Configuration Wizard,
the InnoDB or MyISAM storage engine
can be selected as the default. See
Section 2.10.3.5, “The Database Usage
Dialog”.