Database Copy

I have a backup of my database from PHP5/MySQL 5 using phpmyadmin that I want to restore to my test server that is PHP4/MySQL4 using phpmyadmin. I keep getting the following error the error:

#1064 - You have an error in your SQL syntax.  Check the manual that corresponds to your MySQL server version for the right syntax to use near 'DEFAULT CHARSET=latin1 AUTO_INCREMENT=2' at line 12  

1. What is the "CHARSET=latin1"

2. Can I just remove all the "DEFAULT CHARSET=latin1" references and not affect anything?

3. What is a good way to deal with this?

Thanks.

When you created the backup in phpmyadmin, were these the settings that you used?

Export =SQL
SQL Options:
Structure: these selected
               Add DROP TABLE
               Add IF NOT EXISTS
               Add AUTO_INCREMENT value
               Enclose table and field names with backquotes

Data: these selected
          Complete inserts
           Extended inserts
           Use hexadecimal for binary fields
           Export type: Insert

On the Import side:

Character set of the file: = latin1

The DB is created in the Swedish-Latin collation.