ORA-12574: TNS:redirection denied
Cause : The connect request failed because it would have required redirection and the caller has requested no redirections.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Not normally visible to the user. For further details, turn on tracing and reexecute the operation. If error persists, contact Oracle Customer Support.
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.