ORA-19586: %s k-byte limit is too small to hold piece directory
Cause : The user-specified limit of k-bytes per backup piece is not enough to hold the backup set control data.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Use the setLimit procedure to increase the k-byte limit and retry the operation.
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.