DB creation in Oracle 10g XE for Windows

Pls. help, I can't create a new db (CAFE). I already created the init.ora and the db creation script. But everytime I ran the said script in sql it displays this error:
" Error at line 1:
ORA-01501: CREATE DATABASE failed
ORA-01504: database name 'CAFE' does not match parameter db_name 'XE'"
Another thing is that, I can't find the default path of oracle, re: $ORACLE_HOME.

People coming from other systems get confused with terminology,
You might be happy using the XE database and simply creating a new schema. A LOT of people use the term database when they really mean schema.
A schema is simply an Oracle database user that has the privileges to create database objects such as tables and views. An Oracle database can contain any number of schemas. A regular user is then given permission to access objects in the various schemas.

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