ERROR 1005 (HY000) at line 244: Can't create table './intranet2/dept.frm' (errno: 150)

Question

I dumped a DB from the production:

mysqldump -u user_name -p intranet2 > intranet2.sql

into the development server:

mysql -u user_name -p intranet2 < intranet2.sql

and I get this:

ERROR 1005 (HY000) at line 244: Can't create table './intranet2/dept.frm' (errno: 150)

I tried to put this in the beginning of the sql file:

SET FOREIGN_KEY_CHECKS = 0;

but I still getting the same message. mysqldump should be able to recreate a database otherwise who can I trust that my backup?