MySQL Replication Issues

So, I've decided to try and take advantage of the master/slave setup now that it's supposedly been improved in 3.6.0. Unfortunately, I'm having some issues.

First, "CREATE TABLE", "DROP TABLE", and "ALTER TABLE" statements don't seem to be replicated. Next, once I transfer a snapshot to the second box and setup vBulletin to use the slave server, I start getting "Error 127 from storage engine" errors on searches. Furthermore, ignoring the searches, my site actually seems to be slower than when it was just running on the single box.

Any advice?

Some more info:

Server 1 (serves web pages and master MySQL):
- (2) 2.8GHz Xeon Processors w/ HT
- 4GB of DDR2-400
- (3) 73GB 10K RPM SCSI Drives in RAID 5

Server 2 (serves other web pages w/ MySQL, none of any meaningful load, and slave MySQL for Server 1):
- (2) 2.8GHz Xeon Processors w/ HT
- 2GB of DDR2-400
- (2) 73GB 10K RPM SCSI Drives in RAID 1

Both servers run Plesk 7.5.4 in RHEL3, upgraded with ART RPMs. The kernel version is 2.4.21-47.ELsmp, the PHP version is 5.0.4, and the MySQL version is 4.1.20.