ORA-06707: TLI Driver: connection failed
Cause : TLI failed to establish the connection to a SQL*Net TCP/IP server due to an error encountered by the remote server, which has supplied a string describing the remote error.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
See the SQL*Net TCP/IP User's Guide section "orasrv Messages" for the specific cause and action.
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.