and CHARSET is now the same with CHARACTER SET:

CREATE DATABASE name 
  [DEFAULT] {CHAR SET | CHARACTER SET | CHARSET} csname


CREATE TABLE (...)  [DEFAULT] {CHARSET | CHARACTER SET | CHAR SET} [=] csname

To Paul and Arjen:
However this should be recommended in db option to conform SQL99:
CREATE DATABASE dbname DEFAULT CHARACTER SET csname
In table option there is no SQL99 recommended syntax as far as
table charset is MySQL extension.