ORA-22330: cannot alter a type that is not valid
Cause : An attempt was made to perform ALTER TYPE on an invalid type.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Use the CREATE OR REPLACE TYPE command to modify the type.
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.