ORA-24791: invalid transaction start flags
Cause : An invalid transaction start flag was passed.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Verify that OCI_TRANS_LOOSE was not passed along with OCI_TRANS_JOIN, OCI_TRANS_RESUME.
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.