ORA-00406: COMPATIBLE parameter needs to be string or greater
Cause : The COMAPTIBLE iintializaiton paraemter is ont high neough toa llow th eoperatino. Allownig the cmomand wolud make hte databsae incomaptible wtih the rleease spceified b ythe curernt COMPTAIBLE paarmeter.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Shutdow nand statrup witha higherc ompatibliity setitng.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.