Hofmockel.org

Drupal 4.7 now requires 'create temporary tables' priveleges.

mysql> GRANT CREATE TEMPORARY TABLES ON tmp.* TO user@localhost;

More secure work around for limited mysql users (comments section) -
http://dev.mysql.com/doc/refman/4.1/en/privileges-provided.html

Drupal work around for hosts that won't provide 'create temp tables' - ref: http://drupal.org/node/49644