identified by values clause

Is there a restriction on creating a user in a DB (8.1.6) with the same password as a different user in the same DB using the IDENTIFIED BY VALUES clause? I seem to be having problems using it:

SQL> create user fraze identified by fraze;

User created.

SQL> select username, password from dba_users where username='FRAZE';

USERNAME PASSWORD
------------------------------ ------------------------------
FRAZE 86AB9AE3189C7AFB

SQL> create user fraze1 identified by values '86AB9AE3189C7AFB';

User created.
SQL> grant connect to fraze;

Grant succeeded.

SQL> grant connect to fraze1;

Grant succeeded.

SQL> connect fraze/fraze
Connected.
SQL> connect fraze1/fraze
ERROR:
ORA-01017: invalid username/password; logon denied

SQL> select username, password from dba_users where username
2 like 'FRAZE%';

USERNAME PASSWORD
------------------------------ ------------------------------
FRAZE 86AB9AE3189C7AFB
FRAZE1 86AB9AE3189C7AFB

The password column is a hash of the username and the password combined. you can't copy a password by copying the hash value to a different username.