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I can't create a database in phpMyAdmin
Databases need to be created in cPanel. You can then edit your database from phpMyAdmin. For a flash tutorial on using phpMyAdmin http://www.buyhttp.com/tutorials/cpanelx3-tutorials/phpmyadmin.html. If you have created the database in cPanel and you are still getting this error, look for a line in the beginning of your .sql file that contains "CREATE DATABASE" and remove that entire line. Now you should be able to complete the restore.