Trying To Create New Wordpress Database Table

Try this code

register_activation_hook ( __FILE__, 'on_activate' );

function on_activate() {
    global $wpdb;
    $create_table_query = "
            CREATE TABLE IF NOT EXISTS `{$wpdb->prefix}table1` (
              `id` bigint(20) unsigned NOT NULL default '0',
              `name` text NOT NULL,
              `address` text NOT NULL
            ) ENGINE=MyISAM  DEFAULT CHARSET=utf8;
    ";
    require_once( ABSPATH . 'wp-admin/includes/upgrade.php' );
    dbDelta( $create_table_query );
}

Your create table syntax is wrong, should be:

 $sql = 'CREAT TABLE '.$table_name.'(
-----
 $sql = 'CREATE TABLE '.$table_name.'(

Edit: Define your primary key

 $sql = 'CREATE TABLE '.$table_name.'(
        id INTEGER NOT NULL,
        thumbs_max VARCHAR(3),
        image_max VARCHAR(4),
        image_quality VARCHAR(3),
        PRIMARY KEY (id))';

Bit of extra info on SQL from W3schools: http://www.w3schools.com/sql/sql_primarykey.asp