How to correct error code 1006

[Jonathan Villa]

I installed MySQL 4.0.14-standard from binary onto a Red Hat 8.0 system.
I always follow the steps described in INSTALL-BINARY as well as review
what shows up when I type ./configure.
 
The only thing I did this time around was that I changed the user's name
from mysql to mysqladmin.  I get the follow error when trying to create
a new database:
 
#1006 - Can't create database 'demo'. (errno: 13)
 
Does anyone know the fix to this?