ORA-16132: An error occurred during activation of the standby.
Cause : An error occurred during activation of the standby database following a Terminal Recovery.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Check the standby alert log additional information.
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.