ORA-26670: STREAMS option requires COMPATIBLE parameter to be string or higher
Cause : Streams requires compatibility to be 9.2.0 or higher.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Shut down and restart with an appropriate compatibility setting.
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.