@descalzo - I've been looking through recent support tickets and chatting to him on IRC, and it appears he's done everything right (permissions right, transfer type correct) and other people on his server (Lotus) are having similar problems.
So is your problem fixed? :)
Also, this was documented in the Wiki, plus the MySQL Database Wizard guides you through the process step-by-step
http://x10hosting.com/wiki/How_to_Create_a_MySQL_Database_and_User
Please reply to this support ticket with the following information. Copy the information EXACTLY and remember to insert an X into the parantheses and insert your cPanel Username where stated.
Due to some recent server maintenace, signups may take considerably longer than usual. Please be patient while the signups attempt to catch up.
Unfortunately we are unable to provide an estimate at this time, but it shouldn't take any longer than a few days.
When you click the Extract button, it usually asks for a place where it will extract it to. Try changing this to somewhere else, and then move the extracted files :wink: