ORA-01121: cannot rename database file string - file is in use or recovery
Cause : Attempted to use ALTER DATABASE RENAME to rename a datafile that is online in an open instance or is being recovered.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Close database in all instances and end all recovery sessions.
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.