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You will have to give them access the the mysql module in webmin. Do this from Webmin -> Webmin Users -> User - [[check]] MYSQL Database Server.
Sorry, I skimmed your post. You can set new users to automatically have access under Servers -> Virtual Servers -> Module Config -> Find "Feature modules available to domain owners" and then directly under that is MySQL Database Server (for database) (y) Yes ( ) No
If you have Yes selected then it should give them access to the mysql module by default.
sorry maybe I didn't explain well.
It gives the access to the mysql module, but does not give the m access to create new databases even if I select that setting when creating their account.
Try logging in to webmin as the domain user, go to Servers -> Virtualmin Virtual Servers, then go to the domain, then to "Edit Databases". You can control addition and deletion of databases from here.
Is there a way to allow the user to add his or her own databases instead of having to get the server owner involved?