All I had to do was put this insettings.py:
'OPTIONS':{'init_command':'SET storage_engine=INNODB'}
Then I created the database myself in MySQL with:
CREATEDATABASE my_database CHARACTER SET utf8;
followed by all theCREATE USERandGRANTcalls.
After that,./manage.py syncdband./manage.py migrate(since I use South) finished everything up.
It's been working fine so far. Didn't have to change any MySQL config files,