EQEmulator Forums - world.exe flag giving database.SetGMFlag failed error?????

ok I give, I am not sure whats going on here. Ever since I went to v0.3.5 I have not been able to use any other database except lurkers(i think this is the one he put out as starter db around 0.3.3 or 0.3.4) Any way I set everything up the same way I always do(my config files posted below.) I am trying to use just the basic db.sql that comes with the download of 0.3.5,
I am also getting the same results with 0.3.6...
I drop the old eq database and create an empty one. I run mysql.exe and do "use eq;" then
"source db.sql;" it goes through without any errors. NOW when I try to flag my account with the
following:

world.exe flag eqemu 200

I always get the following results:

Using database 'eq' at localhost
EqEmu 0.3.6 Ladin Schraubt Hnhner Worldserver
Account being GM Flagged:1, Level: 200

database.SetGMFlag failed.

The result of this is the account does not seem to get created. Anyone know what is going on?
---------------------------------------------
[loginserver.ini]

[LoginServer]
loginserver=localhost
loginserver2=localhost
loginport=5999
loginport2=5999
worldname=Evertits
locked=false
account=
password=
worldaddress=146.122.20.35

[WorldServer]
Defaultstatus=
Unavailzone=

[LoginConfig]
ServerMode=Standalone
ServerPort=5999
UplinkAddress=
UplinkPort=
UplinkAccount=
UplinkPassword=
------------------------------------------------
[db.ini]

[Database]
host=localhost
user=test
password=test
database=eq

------------------------------------------------
[boot5zones.bat]

@echo off
start zone . 127.0.0.1 7995 127.0.0.1
start zone . 127.0.0.1 7996 127.0.0.1
start zone . 127.0.0.1 7997 127.0.0.1
start zone . 127.0.0.1 7998 127.0.0.1
start zone . 127.0.0.1 7999 127.0.0.1
exit
cls