Missing Files and error 1064

[Melandril]

I've tried three times to set up a server now...I'm sure I must be an idiot (for those of you with huge egos), but to get the heart of the matter, I noticed that on the previous two attempts that I seemed to fail at the source reloaddb.sql step. I opened up the file on my second failure but didn't notice anything exceptional. But before loading the command this time, I noticed that I was missing six entries
"grid.txt", "lootdrop.txt", "loottable.txt", "lootdrop_entries.txt", "loottable_entries.txt", and "npc_spells_entries.txt". So to get around this, I made dummy files with these names and got past that command prompt. Now the error I'm having is with the next line to enter
"GRANT ALL PRIVILEGES ON *.* to '%'@localhost IDENTIFIED BY '%';"
Which when I enter, either in caps or without, error 1064 which is a syntax error. What am I supposed to enter here?
Thank you all for any concern you show which provides positive effect =)