ORA-24772: Cannot mix tightly-coupled and loosely-coupled branches
Cause : Application attempted to start a transaction with a global transaction identifier and a wrong option.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Verify that all branches of a global transaction are started with either OCI_TRANS_TIGHT or OCI_TRANS_LOOSE option. If the application is correct and uses distributed updates, contact customer support.
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.