Whoever is interested this works great!!

In this example we will assume the source database name to be called "pri" and the the target database, we are creating is to be called "aux" and the "sys" password for aux is "sys"

1) From the command prompt create a password file for the AUX database.

orapwd file=$ORACLE_HOME/dbs/orapwaux password=sys entries=5


2) Create a parameter file from the spfile for the AUX database. Ensure that the ORACLE_SID
is set to the DB you want to clone.

sqlplus / AS sysdba

create pfile='/oracle/10.2.0.1.0/dbs/initaux.ora' from spfile;

3) Edit the file /oracle/10.2.0.1.0/dbs/initaux.ora;
change all occurrences of "pri" to "aux". Next change db_name and instance_name to aux.

Then add the following two lines to the parameter file:

db_file_name_convert=('/oracle/data/pri','/oracle/data/aux')
log_file_name_convert=('/oracle/data/pri','/oracle/data/aux')


4) create the following directories mkdir udump arch bdump audit cdump

5) Edit tnsnames.ora and listener.ora files to add the AUX entry

6. Shutdown and startup the listener.ora. From the command prompt type the follow:

lsnrctl stop

lsnrctl start

7) From RMAN, type the following commands.

RMAN
CONNECT AUXILIARY SYS/SYS@GOLD_AUX
CONNECT TARGET SYS/SYS@GOLD_AUX
STARTUP CLONE NOMOUNT FORCE;
DUPLICATE TARGET DATABASE TO AUX;

8) Remove the following entries from initaux.ora

db_file_name_convert=('/oracle/data/pri','/oracle/data/aux')
log_file_name_convert=('/oracle/data/pri','/oracle/data/aux')

9) Login into "aux" DB and create and spfile

create spfile from pfile='/oracle/10.2.0.1.0/dbs/initaux.ora';

10) Register AUX database with catalog for backups