ORA-29289: directory access denied
Cause : A directory object was specified for which no access is granted.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Grant access to the directory object using the command GRANT READ ON DIRECTORY [object] TO [username];.
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.