Tablespace creation error

I got the following error when i tried to create a tablespace as follows,

SQL> create tablespace temp1
2 datafile 'c:\oracle\oradata\newdb\new.dbf' size 250k temporary;
create tablespace temp1
*
ERROR at line 1:
ORA-12913: Cannot create dictionary managed tablespace

Can anyone explain me,

1) What is the reason for this error?
2) What i've to do to avoid this error?

Thanks,
Malru

double post

You are trying to create dictionary managed tablespace on database with SYSTEM tablespace is locally managed.

Please create temp tablespace with

Create temporary tablespace temp1 tempfile 'filename' size 250m;

Cheers