I'm working through the Django tutorial and receiving the following error when I run the initial python manage.py syncdb:

Traceback (most recent call last):
File "manage.py", line 11, in <module>
  execute_manager(settings)
File "/Library/Python/2.6/site-packages/django/core/management/__init__.py", line 362 in execute_manager
  utility.execute()
File "/Library/Python/2.6/site-packages/django/core/management/__init__.py", line 303, in execute
  self.fetch_command(subcommand).run_from_argv(self.argv)
File "/Library/Python/2.6/site-packages/django/core/management/base.py", line 195, in run_from_argv
  self.execute(*args, **options.__dict__)
File "/Library/Python/2.6/site-packages/django/core/management/base.py", line 222, in execute
  output = self.handle(*args, **options)
File "/Library/Python/2.6/site-packages/django/core/management/base.py", line 351, in handle
  return self.handle_noargs(**options)
File "/Library/Python/2.6/site-packages/django/core/management/commands/syncdb.py", line 49, in handle_noargs
  cursor = connection.cursor()
File "/Library/Python/2.6/site-packages/django/db/backends/dummy/base.py", line 15, in complain
  raise ImproperlyConfigured, "You haven't set the DATABASE_ENGINE setting yet."
django.core.exceptions.ImproperlyConfigured: You haven't set the DATABASE_ENGINE setting yet.

My settings.py looks like:

DATABASES = {
  'default': {
    'ENGINE': 'django.db.backends.mysql', # Add 'postgresql_psycopg2', 'postgresql', 'mysql', 'sqlite3' or 'oracle'.
    'NAME': 'dj_tut',                      # Or path to database file if using sqlite3.
    'USER': '',                      # Not used with sqlite3.
    'PASSWORD': '',                  # Not used with sqlite3.
    'HOST': '',                      # Set to empty string for localhost. Not used with sqlite3.
    'PORT': '',                      # Set to empty string for default. Not used with sqlite3.
  }
}

I'm guessing this is something simple, but why isn't it seeing the ENGINE setting?