If you can open the SQL file for the sample data (installation/sql/phpmylibrary.sql), you can update all instances of "TYPE=MyISAM" to the following, and installation will go through will little/no troubles. I had the same error, updated those lines and it installed fine for me. Depending on your MySQL version and setup, you may still have other problems though. Good luck!

Change
TYPE=MyISAM
to
TYPE=MyISAM, DEFAULT CHARACTER SET latin1;