The latest MySQL (5.1.30) setup does not work properly on Vista Home Edition. I think that MySQL team will solve it eventually, so here’s how to make it work:
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DO NOT install into the directory that setup offers. Change both install dir and data dir to something that does not contain spaces, e.g. c:\mysql, c:\mysql\data
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Create your own my.ini file and add the following parameter there:
datadir = -
As administrator, run
mysqld --install --defaults-file= -
start service
That’s all