Based on the error you're getting from Waterline, it looks like a problem with your global Sails' dependencies. That's not the right version of Waterline for Sails 0.9.8. This can happen if you've been trying out other versions of Sails; the npm cache gets a little muddied-up. To correct it, do the following:
sudo npm uninstall sails -g
npm cache clear
sudo npm install sails -g
That will reinstall Sails with all of the correct dependencies. You shouldn't have to change your project.