ajaxIM MySQL Errors

We just downloaded ajaxIM / Buddylist and tried installing them on a test server running Drupal 5.1. We received a red error box with SQL errors as follows:

    * user warning: You have an error in your SQL syntax. Check the manual that corresponds to your MySQL server version for the right syntax to use near 'DEFAULT CHARSET=latin1' at line 10 query: CREATE TABLE ajaxim_messages ( recipient int(11) NOT NULL, sender int(11) NOT NULL, message text NOT NULL, type text NOT NULL, stamp text NOT NULL, id bigint(20) NOT NULL, room varchar(255) NOT NULL, PRIMARY KEY (id) ) ENGINE=MyISAM DEFAULT CHARSET=latin1; in /homepages/35/d157794216/htdocs/sites/s157794238.onlinehome.us/www/includes/database.mysql.inc on line 172.
    * user warning: You have an error in your SQL syntax. Check the manual that corresponds to your MySQL server version for the right syntax to use near 'DEFAULT CHARSET=latin1' at line 8 query: CREATE TABLE ajaxim_status ( uid int(11) NOT NULL, status int(11) NOT NULL, last_ping text NOT NULL, last_status int(11) NOT NULL, last_stmsg varchar(50) NOT NULL, PRIMARY KEY (uid) ) ENGINE=MyISAM DEFAULT CHARSET=latin1; in /homepages/35/d157794216/htdocs/sites/s157794238.onlinehome.us/www/includes/database.mysql.inc on line 172.
    * user warning: You have an error in your SQL syntax. Check the manual that corresponds to your MySQL server version for the right syntax to use near 'DEFAULT CHARSET=latin1' at line 6 query: CREATE TABLE ajaxim_chats ( uid int(11) NOT NULL, room text NOT NULL, id bigint(20) NOT NULL, PRIMARY KEY (uid) ) ENGINE=MyISAM DEFAULT CHARSET=latin1; in /homepages/35/d157794216/htdocs/sites/s157794238.onlinehome.us/www/includes/database.mysql.inc on line 172.

Our server settings from the status page are as follows:

Drupal	5.1
Configuration file	Protected
Cron maintenance tasks	Last run 17 min 27 sec ago
You can run cron manually.
Database schema	Up to date
File system	Writable (public download method)
GD library	bundled (2.0.28 compatible)
MySQL database	4.0.27
PHP	5.2.1
Unicode library	PHP Mbstring Extension
Web server	Apache/1.3.33 (Unix)

And I did go through update.php when enabling these three modules and had no errors.

I think that is all the information I can think of that would be helpful in this bug report.