The installation fails with MySQL 5.1 or higher as they have removed TYPE=MyISAM as a valid type. This should now be ENGINE=InnoDB. Unfortunately I cant edit the install.sql file as the archive is password protected.
Thank you for your information, we'll try to fix this as soon as possible.
Anyway, the JoomSEF's installation ZIP package is not password protected, so you can fix the install.sql file yourself.