Apparently the MySQL Command Line Client uses the semi-colon as its default delimiter, which screwed up the creation of stored procedures.
Use the following commands instead, I will update readme.txt for future versions.
Code:
1. Create a MySQL database and import the schema.sql file.
mysql -u root -p -h 192.168.1.1 -e "CREATE DATABASE ioftpd"
mysql -u root -p -h 192.168.1.1 -D ioftpd --delimiter=$ < schema.sql