Database creation is slow (no replies)

Hi,

MySQL db server(v5.1.46-log on a separate VM) with utf8 encoding on Open Suse 11.3 having 4 processors & 2 gb ram.
There are 1000 tables and lots of foreign keys and indexes and database creation minimum 40 minutes. Is this an acceptable for db creation given above configuration ?

Database Driver Version is mysql-connector-java-5.1.10

PS : My previous MySQL server with latin1 encoding with 6 CPU and 12 gigs ram used to take 10 mins.