Most probably, the user you are trying to connect to MySQL server with, has no permissions to create stored procedures. Please check this out.
Otherwise, we are not aware of any problems with MySQL.
Also, there is no such script for creating the whole database structure because all database objects are dynamically created based on the db classes in the code and the current structure of the database.
Please let us know if you still get the error with a user with full database permissions.
the Telerik team