Hi,
I did come across similar problems.....
My OS.....sunsolaris 8
oracle ver 8i.......
When the directory is not existing it will not create the database.
It will fail saying not existing...recreate the dir and rerun the script...it will work.
here I am mentioning the dir in logfiles....and system file dir....and control files..
....otherwise create the dir....in all the mount points and run the script again......it will work...It worked for me.
Hope I have cleared you.
Thanigai.