Install from ZIP (no replies)

Hello all,
I really hope someone out there can help me out with this one.

I'm trying to install MySQL from the ZIP archives but I'm struggling to start the server once I've done all the install stuff.

I'm extracting the contents of the ZIP into C:/mysql and creating a my.ini file which contains the following:

[mysqld]
basedir=C:/mysql
datadir=c:/mydata/data
federated

I only put the "federated" on the end to remove another error!!!

Then I try to run the server by running:

mysqld --console

I get this output after attempting to run the server:

C:\mysql\bin>mysqld --console
mysqld: Table 'mysql.plugin' doesn't exist
110105 10:47:01 [ERROR] Can't open the mysql.plugin table. Please run mysql_upgr
ade to create it.
InnoDB: The InnoDB memory heap is disabled
InnoDB: Mutexes and rw_locks use Windows interlocked functions
InnoDB: Compressed tables use zlib 1.2.3
110105 10:47:01  InnoDB: Initializing buffer pool, size = 128.0M
110105 10:47:01  InnoDB: Completed initialization of buffer pool
InnoDB: The first specified data file .\ibdata1 did not exist:
InnoDB: a new database to be created!
110105 10:47:01  InnoDB: Setting file .\ibdata1 size to 10 MB
InnoDB: Database physically writes the file full: wait...
110105 10:47:01  InnoDB: Log file .\ib_logfile0 did not exist: new to be created

InnoDB: Setting log file .\ib_logfile0 size to 5 MB
InnoDB: Database physically writes the file full: wait...
110105 10:47:01  InnoDB: Log file .\ib_logfile1 did not exist: new to be created

InnoDB: Setting log file .\ib_logfile1 size to 5 MB
InnoDB: Database physically writes the file full: wait...
InnoDB: Doublewrite buffer not found: creating new
InnoDB: Doublewrite buffer created
InnoDB: 127 rollback segment(s) active.
InnoDB: Creating foreign key constraint system tables
InnoDB: Foreign key constraint system tables created
110105 10:47:02  InnoDB: 1.1.4 started; log sequence number 0
110105 10:47:02 [ERROR] Fatal error: Can't open and lock privilege tables: Table
 'mysql.host' doesn't exist

C:\mysql\bin>

If I try to run

mysql_upgrade

as suggested then I only get errors too.

I really would appreciate any advice on how to solve this problem.
Cheers.
Phil