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There are a few things that can trip people up with MySQL. We try to allow for them, but sometimes default settings override. Running the following commands and looking for the desired result should flush out any config issues:

SHOW VARIABLES LIKE '%olla%'; -- want latin1_swedish_ci for all.
SHOW VARIABLES LIKE '%engine%'; -- want a storage engine of MyISAM
SHOW VARIABLES LIKE 'max_allowed_packet'; -- should be 50 megs, or 52428800
SELECT T.table_name, CCSA.character_set_name FROM information_schema.`TABLES` T, information_schema.`COLLATION_CHARACTER_SET_APPLICABILITY` CCSA WHERE CCSA.collation_name = T.table_collation AND T.table_schema = 'fogbugz' AND CCSA.character_set_name <> 'latin1'; -- Determines if any tables have improper collation

If your installation is experiencing problems with schema errors, a solution may be to make sure you’re not running with STRICT mode turned on. That mode causes some schema warnings to be interpreted as errors. You may also need this if you’re upgrading from FogBugz 6 or earlier. You can check for it thusly:

SELECT @@global.sql_mode; -- want blank, or at least no STRICT

If you’re experiencing character set problems or if you installed MySQL with a default collation that isn’t latin1_swedish_ci, you may need to force FogBugz to talk to the server using latin1. To do so, add ‘charset=latin1’ to the end of your connection string on the FogBugz server.

The lettercase of the table names must also be set correctly for your OS. These are almost always correct with the defaults, which differ across platforms, but if you are moving a MySQL-backed FogBugz installation between platforms (Windows, Unix and Mac), make sure that table names are case insensitive:

SHOW VARIABLES LIKE 'lower_case_table_names'; -- the value should be 1

NOTE  –  The ‘lower_case_table_names‘ setting will affect all the databases on your MySQL Server. Do not use this setting unless you are ONLY hosting fogbugz on the server or you know what you are doing.

Additionally, when importing and exporting data on a MySQL server, you should have disk space in excess of three times your database dump file size. The logs generated by an import are sometimes twice the size of the dump file itself.

See also this post for a sample my.cnf / my.ini file