Error installing into UTF-8 MySQL database

• Error

When installing TikiWiki 3.0 into MySQL (I'm using 5.1.35 but I don't think it matters much) where the database has been created with a charset of 'utf-8' (typically because this is the server default), one table cannot be created and that command and subsequent inserts fail:

CREATE TABLE `tiki_sefurl_regex_out` (
  `id` int(11) NOT NULL auto_increment,
  `left` varchar(256) NOT NULL,
  `right` varchar(256) NULL default NULL,
  `type` varchar(32) NULL default NULL,
  `silent` char(1) NULL default 'n',
  `feature` varchar(256) NULL default NULL,
  `comment` varchar(256),
  `order` int(11) NULL default 0,
  PRIMARY KEY(`id`),
  UNIQUE KEY `left` (`left`(256)),
  INDEX `idx1` (silent, type, feature(30))
)
y was too long; max key length is 767 bytes

The issue is that the table key is too long when using UTF-8. See http://bugs.mysql.com/bug.php?id=4541.

1. Reinstall, using a database which has a charset of 'latin1'. But then does one have support for the desired character sets?
2. Run the commands again, adding "CHARSET 'latin1'" to the CREATE TABLE command. This will create the table with latin1 even though the rest of the tables in the database are utf-8.
I don't yet know whether no.2 actually works because after doing that I couldn't get into my Tiki.

This bug has been demonstrated on show2.tiki.org

Please demonstrate your bug on show2.tiki.org