ORA-23325: parameter type is not string
Cause : A conflict resolution priority function was given a type different than the type assigned to the priority group; or the priority group has no type assigned or a function; or dbms_defer_sys_query was called to retrieve a deferred rpc parameter from the deferred rpc queue, but the type of the parameter does not match the return type of the function.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Use the function corresponding to the parameter 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.