You need to set the parameter in all sections that apply to the action you are performing, and always in the [MySQLd] section. This parameter applies to the buffers of the elements you are using. Thus, in [MySQLd] for your MySQL server, deamon is processed on linux / service on windows. And if you want to dump with MySQLDump, add it as a parameter on the command line or create a [MySQLDump] section in my.ini, as well as for this tool with the same parameter, to make it permanent. If you want to import the dump from MySQL again, use the parameter on the command line again or create a [MySQL] section with the same parameter in my.ini to make the selection permanent for these tools.
I kept talking about my.ini because I am in windows, but on linux, which is my.cnf, of course.
I decided to explain it here because it took me years to figure it out, because it is not explained anywhere. In the examples, however, I noticed that some ppl have customization under several sections, so I started google more and found a correlation between the sections and the actions that they do. Now I no longer have this problem, and in most cases settings are not required, since the mentioned 128M are not needed here. However, since this is the maximum that the server will use for this buffer, if you have memory, just set it high enough to never get into trouble with your actions. The size you really need is slightly larger than the largest record in your database.
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