Database Setup

I can't seem to get the database setup... I am installing gallery on a localhost. Below are all the version specifics that I have installed:

Gallery version: 2.3
PHP version: 5.2.8
Webserver Apache: 2.0.36
Database MySql 5.0.67
Activated toolkits ???
Operating system: Windows XP SP3
Browser Firefox: 3.0.6

When I get to set 5 I get the following error: "You must have the MySQL PHP module installed"

I have verified that the following line is uncommented in my php.ini
extension=php_mysql.dll

My path is the following: c:\webserver\imagemagick-6.4.8-q16;C:\webserver\php\;C:\WINDOWS\system32;C:\WINDOWS;C:\WINDOWS\System32\Wbem;C:\Program Files\Common Files\Roxio Shared\DLLShared\;C:\Program Files\Common Files\Roxio Shared\DLLShared\;C:\Program Files\Common Files\Roxio Shared\9.0\DLLShared\;C:\webserver\mysql\bin

I have logged into mysql using the same user name and password as entered in the installer form and created a DB called "gallery2". Do I need to do anything else? the form lists "table prefix" and "column prefix" fields. Do I need to set these??

Thanks for the help.