ORA-01170: file not found 'string'
Cause : ALL datafiles and, if NORESETLOGS, ALL logfiles MUST be accessible by the process for CREATE CONTROLFILE.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
The file specified probably contains a typing error. Double check command and the existance of all files and then resubmit.
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.