ORA-28542: Error in reading HS init file
Cause : Reading the gateway init file generated an error.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Check the gateway initialization file name to see that the gateway initialization file acctually exists. Check the ifile parameter to see that it points to the correct location.
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.