>1. When I connect to the data source (lDB = sqlconnect('test') ) results in the ODBC dialog appearing on the screen. All I do then is press OK and I have a connection.

Have you tried the following command before attempting the SQLConnect()?

SQLSetProp(0, "DispLogin", 3)

>2. I am not able to create a table with the following syntax:
>
>llok = sqlexec(lDB,'create table junk ( fld1 c(10) )')

I would guess that MySQL doesn't understand the field type. Try something like create table junk (fld1 char(10)).

Also, you should take a look at what AERROR() returns:

for x = 1 to AERROR(lsterr)
    messagebox(lsterr(x, 2))
endfor

HTH!