I have done some test. Please go through it.

In primary Server :

Microsoft Windows [Version 5.2.3790]
(C) Copyright 1985-2003 Microsoft Corp.

C:\Documents and Settings\Administrator>set oracle_home=P:\oracle\product\10.1.0
\db_1

C:\Documents and Settings\Administrator>set oracle_sid=tceng

C:\Documents and Settings\Administrator>sqlplus /nolog

SQL*Plus: Release 10.1.0.2.0 - Production on Thu May 22 16:38:56 2008

Copyright (c) 1982, 2004, Oracle. All rights reserved.

SQL> connect sys/infodba as sysdba
Connected to an idle instance.
SQL> startup;
ORACLE instance started.

Total System Global Area 612368384 bytes
Fixed Size 790096 bytes
Variable Size 170914224 bytes
Database Buffers 440401920 bytes
Redo Buffers 262144 bytes
Database mounted.
Database opened.
SQL> alter system switch logfile;

System altered.

SQL> alter system switch logfile;

System altered.

SQL> alter system archive log cuurent;
alter system archive log cuurent
*
ERROR at line 1:
ORA-01974: Illegal archive option


SQL> ALTER SYSTEM ARCHIVE LOG CURRENT;

System altered.

SQL>


In Standby server :

Microsoft Windows [Version 5.2.3790]
(C) Copyright 1985-2003 Microsoft Corp.

C:\Documents and Settings\Administrator>set oracle_home=C:\oracle\product\10.1.0\db_1

C:\Documents and Settings\Administrator>set oracle_sid=stand

C:\Documents and Settings\Administrator>sqlplus /nolog

SQL*Plus: Release 10.1.0.2.0 - Production on Thu May 22 16:40:47 2008

Copyright (c) 1982, 2004, Oracle. All rights reserved.

SQL> connect sys/infodba as sysdba
Connected to an idle instance.
SQL> startup nomount;
ORACLE instance started.

Total System Global Area 612368384 bytes
Fixed Size 790096 bytes
Variable Size 170652080 bytes
Database Buffers 440401920 bytes
Redo Buffers 524288 bytes
SQL> alter database mount standby database;

Database altered.

SQL> ALTER DATABASE RECOVER MANAGED STANDBY DATABASE DISCONNECT FROM SESSION;

Database altered.

SQL> recover managed standby database cancel;
ORA-16136: Managed Standby Recovery not active


SQL> SELECT SEQUENCE#, FIRST_TIME, NEXT_TIME FROM V$ARCHIVED_LOG ORDER BY SEQUENCE#;

SEQUENCE# FIRST_TIM NEXT_TIME
---------- --------- ---------
67 20-MAY-08 20-MAY-08
68 20-MAY-08 20-MAY-08
69 20-MAY-08 20-MAY-08
70 20-MAY-08 20-MAY-08
71 20-MAY-08 20-MAY-08
72 20-MAY-08 20-MAY-08
73 20-MAY-08 20-MAY-08
74 20-MAY-08 20-MAY-08
75 20-MAY-08 20-MAY-08
76 20-MAY-08 21-MAY-08
77 21-MAY-08 21-MAY-08

SEQUENCE# FIRST_TIM NEXT_TIME
---------- --------- ---------
78 21-MAY-08 21-MAY-08

12 rows selected.

SQL> SELECT SEQUENCE#, FIRST_TIME, NEXT_TIME FROM V$ARCHIVED_LOG ORDER BY SEQUENCE#;

SEQUENCE# FIRST_TIM NEXT_TIME
---------- --------- ---------
67 20-MAY-08 20-MAY-08
68 20-MAY-08 20-MAY-08
69 20-MAY-08 20-MAY-08
70 20-MAY-08 20-MAY-08
71 20-MAY-08 20-MAY-08
72 20-MAY-08 20-MAY-08
73 20-MAY-08 20-MAY-08
74 20-MAY-08 20-MAY-08
75 20-MAY-08 20-MAY-08
76 20-MAY-08 21-MAY-08
77 21-MAY-08 21-MAY-08

SEQUENCE# FIRST_TIM NEXT_TIME
---------- --------- ---------
78 21-MAY-08 21-MAY-08

12 rows selected.

SQL> SELECT SEQUENCE#,APPLIED FROM V$ARCHIVED_LOG ORDER BY SEQUENCE#;

SEQUENCE# APP
---------- ---
67 NO
68 NO
69 NO
70 NO
71 NO
72 NO
73 NO
74 NO
75 NO
76 NO
77 NO

SEQUENCE# APP
---------- ---
78 NO

12 rows selected.

SQL>


Please suggest.