MySQL: grant permissions denied for CREATE - mysql

Question

I setup a database & user along with grant permissions how I normally do and I'm still getting access denied and I'm not sure why:
[root#server23 redditonrails]# mysql -u redditonrails -p
Enter password:
Welcome to the MySQL monitor. Commands end with ; or \g.
Your MySQL connection id is 431954
Server version: 5.0.45 Source distribution
Type 'help;' or '\h' for help. Type '\c' to clear the buffer.
mysql> use redditonrails_development;
Database changed
mysql> create table test;
ERROR 1142 (42000): CREATE command denied to user 'redditonrails'#'localhost' for table 'test'
mysql> show grants;
+------------------------------------------------------------------------------------------------+
| Grants for redditonrails#localhost |
+------------------------------------------------------------------------------------------------+
| GRANT USAGE ON *.* TO 'redditonrails'#'localhost' IDENTIFIED BY PASSWORD '*******' |
| GRANT ALL PRIVILEGES ON `redditonrails_test`.`localhost` TO 'redditonrails'#'localhost' |
| GRANT ALL PRIVILEGES ON `redditonrails_development`.`localhost` TO 'redditonrails'#'localhost' |
| GRANT ALL PRIVILEGES ON `redditonrails`.`localhost` TO 'redditonrails'#'localhost' |
+------------------------------------------------------------------------------------------------+
4 rows in set (0.00 sec)
mysql> SELECT USER(),CURRENT_USER();
+-------------------------+-------------------------+
| USER() | CURRENT_USER() |
+-------------------------+-------------------------+
| redditonrails#localhost | redditonrails#localhost |
+-------------------------+-------------------------+
1 row in set (0.00 sec)

Answer 1

I don't believe your syntax is right. You're specifying:
GRANT ALL PRIVILEGES ON
redditonrails_development.localhost
The expected syntax for db-level GRANT is: ON $db.$table. Based on this, you're only granting on the table named "localhost". Change to:
GRANT ALL PRIVILEGES ON
redditonrails_development.*

Answer 2

It would seem that your user redditonrails has all privilages on
redditonrails_development.localhost
which would mean redditonrails_development database and localhost table. what you want is to have there
redditonrails_development.*
witch would mean you have all privilages on all tables (even the new ones you're trying to create)
or at least that's how I see it.