ORA-23515: materialized views and/or their indices exist in the tablespace
Cause : An attempt was made to drop a tablespace which contains materialized views and/or their indices.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Drop the materialized views in this tablespace. Also, find indices belonging to materialized views in this tablespace and drop then. Then try dropping the tablespace.
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.