ORA-14461: cannot REUSE STORAGE on a temporary table TRUNCATE
Cause : REUSE STORAGE was specified with TRUNCATE on a temporary table. This is unsupported as it is meaningless.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Specify DROP STORAGE instead (which is the default).
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.