QUOTE
"The Oxford English Dictionary accepts both pronunciations," Mr. Wilhite said. "They are wrong. It is a soft ‘G,’ pronounced ‘jif.’ End of story."
Speaking of which, MySQL is allegedly named after the Swedish creator's daugther, My. AFAIK that name in turn is not pronounced like the English word "my" (or "mine"), but more like "mycelium" (I think).