You have to create the database from the web panel - (goodies -> mysql or something) first.
Once you have a database, you login to the database from the command line (telnet or ssh into your main web server) using the "mysql" program. You will need to enable shell access for your user if you haven't already.
This will be something like:
[webserver]$ mysql -h mysql.example.com -u username -p databasename
where username is your database username, mysql.example.com is your mysql hostname, and databasename is the name of your database. You'll then get prompted for your (database) password.
Maybe someone else here can give you some more hand-holding in this regard (or check previous forum posts).
He said he plans on releasing a new version Real Soon.
The 1.5.0 version should be functional - the bugs mostly have to do with resetting passwords and creating new accounts when manual approval is required.
My database isn't named the same as the default, but in any event, you can name the database whatever you want, as long as you specify it correctly in the db.php file.