If you are using phpmyadmin 2.1, the Create New Table screen displays areas for defining columns. Following the EXTRA dropdown are three radio buttons. The first of these has a little yellow key (and shows the word "Key" if you hold the mouse over the icon). Click this radio button for the id.
Your statement works OK to create a table on my mysql database. Does your mysql user have "CREATE" privileges? What is the error code being returned?