This is NOT true that you have all privileges are enabled.
We have written at many places that cPanel has a bug and that the "ALL PRIVILEGES" is not true.
As it is also repeated in the tutorial video CP-02
www.jms2win.com/tutorial#jms12x-CP-02 yuo have to contact your hosting provider to ask him increase the MySQL user permission.
If you want to also report the bug to cPanel , here it is their link
bugzilla.cpanel.net/
The problem is related to cPanel the does not provide ALL PRIVILEGES correctly on MySQL 5.0.
So if you don't have your own server where you could use another tool to upgrade the permission then you have to contact your hosting provder support to ask them grant your user permission with all the privilieges (for MySQL 5.0).
If he does not want, you can contact other provider.
For example, we are also using
www.godaddy.com that does not have such issue as they does not use the cPanel. We also have
www.ovh.com in france that does not have any problem and does not use cPanel.
Probably there are other hosting companies that does not have any problem or provide the additional support to grant the user privileges. This is the case of
www.hostgator.com that use cPanel and grant our user with all the privileges.
Here it is another post in our fourm where you will find our answer concerning this cPanel issue.
www.jms2win.com/forum?func=view&catid=26&id=1470
You will find the cPanel bug entry
bugzilla.cpanel.net/show_bug.cgi?id=4678