rake task db:create failing with charset error

Another bottleneck to start with, hopefully solved.

Started with ruby-netbeans on linux, generated the rails application with the help of IDE. It generate database.yml file for me. So without taking any pains I just chenged database credentials and database name and fired rake command rake db:create.

It gave error "charset: utf8, collation: utf8_general_ci (if you set the charset manually, make sure you have a matching collation)" , hmmm seems some wrong input values.

generaed database.yml was (with some manual input values)

development:
adapter: mysql
encoding: utf8
database: Pets_development
username: root
password:
host: localhost

I changed the above settings to

development:
adapter: mysql
database: Pets_development
encoding: utf8
username: root
password:
socket: /var/lib/mysql/mysql.sock
host: 127.0.0.1


it worked, \o/

what seemed to be some encoding issue turned out to be incomplete details provided.

Hope helps someone......