Recently while we were installing a clean copy of Magento 1.7 community version into one of our clients server, we found error occurs and the installation could not be finished. The error message is "Database server does not support the InnoDB storage engine". So we digged this a little bit and found due to the changes of MySQL 5.6, InnoDB storage engine is no longer supported. People are also complaining about this issue on Magento forum as you can see here.
But with solution below, that will no longer be a problem.
1. Unzip the install package of your Magento 1.7 onto your server.
2. Change this file app/code/core/Mage/Install/Model/Installer/Db/Mysql4.php, with the differ file (click to view).
3. Use http visit from your browser with your domain that has Magento installed to start the installation.