ORA-38781: cannot disable media recovery - have guaranteed restore points
Cause : An attempt was made to disable media recovery while there is at least one guaranteed restore point.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Drop all guaranteed restore points and then disable media recovery.
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.