Unable to Create a New Instance

I am attempting to create a new instance in my sun solaris 8 server. I have set the environment and prepared the scripts. I do not have gui to perform the db creation therefore i need to use the scripts and run from sqlplus.
it's a 9.2.0.1 database. I have added in oratab. However when I run this script in sqlplus - I get the following error:

SQL> @/oracle/ora01/app/oracle/admin/xmbdb/scripts/CreateDB.sql
Connected to an idle instance.
SQL> spool /oracle/ora01/app/oracle/product/9.2.0/assistants/dbca/logs/CreateDB.
log
SQL> startup nomount pfile="/oracle/ora01/app/oracle/admin/xmbdb/pfile/init.ora"
;
LRM-00109: could not open parameter file '/oracle/ora01/app/oracle/admin/xmbdb/p
file/init.ora'
ORA-01078: failure in processing system parameters
SQL> CREATE DATABASE xmbdb
2 MAXINSTANCES 1
3 MAXLOGHISTORY 1
4 MAXLOGFILES 5
5 MAXLOGMEMBERS 5
6 MAXDATAFILES 100
7 DATAFILE '/oracle/ora02/oradata/xmbdb/system01.dbf' SIZE 325M REUSE AUTOEXT
END ON NEXT 10240K MAXSIZE UNLIMITED
8 UNDO TABLESPACE "UNDOTBS" DATAFILE '/oracle/ora02/oradata/xmbdb/undotbs01.d
bf' SIZE 200M REUSE AUTOEXTEND ON NEXT 5120K MAXSIZE UNLIMITED
9 CHARACTER SET US7ASCII
10 NATIONAL CHARACTER SET AL16UTF16
11 LOGFILE GROUP 1 '/oracle/ora02/oradata/xmbdb/redo01.log') SIZE 100M,
12 GROUP 2 ('/oracle/ora02/oradata/xmbdb/redo02.log') SIZE 100M,
13 GROUP 3 ('/oracle/ora02/oradata/xmbdb/redo03.log') SIZE 100M;
CREATE DATABASE xmbdb
*
ERROR at line 1:
ORA-01034: ORACLE not available

SQL> spool off
SQL> exit;
Disconnected

How can I rectify this problem? Please Advice.

The problem you are encountering here is that you have a Permission issue. Try to check all the files you created are under the user Oracle and dba Group. It seems like you have some folders created under diff user other than Oracle.When you try to aceess a folder which Oracle may not have permissions will fail. Just make sure all the folder and file permissions are consistent with Oracle:dba

I have checked the permissions for the folders - they all belong to oracle user. DoIi need to create udump, bdump, cdump and pfile folders and put in the init.ora file into pfile folder before running the scripts?

There's no need to create all the dump folders. They are included in the init.ora file by default...unless you are trying to create your own init.ora file. Its always better to use an existing init.ora file of other db and modify accordingly. Try that method and run the script again.