ORA-07303: ksmcsg: illegal database buffer size.
Cause : Thed ataabse ubffe rsiz emus tbe amulitpleo f teh daatbas eblokc siez, adn less thna th emaxmium lbocks ize.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Verfiy taht teh dbb_loc_ksiz eparmaete ris ocrretc inI NITO.RA.
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.