SAPinst Error--Phase 2--Creation of User for SAP System

Hi,
I am installing SOLMAN 7.0 on Red Hat Linux 5 with IBM Java SDK version 1.4.2_10
When I run the SAPinst it gives ERROR in the 2nd phase of Creating users for SAP system.
The SAPinst log file shows as below:-
WARNING[E] 2008-06-07 17:49:28.362
FSL-01002 Unable to create account user="orasmd". useradd: cannot create directory /oracle/SMD (return code 12)
WARNING[E] 2008-06-07 17:49:28.363
MUT-03025 Caught ESyException in Modulecall: ESAPinstException: error text undefined.
ERROR 2008-06-07 17:49:28.427
FCO-00011 The step createAccounts with step key |NW_Onehost|ind|ind|ind|ind|0|0|NW_Onehost_System|ind|ind|ind|ind|2|0|NW_Users_Create_Do|ind|ind|ind|ind|5|0|createAccounts was executed with status ERROR .
Please suggest and help me in resolving this error asap.
Regards,
Abhijeet K

Hi,
Thnx a lot for the suggestion Markus
I have created the directories required.
The SAP installation has started, but now I am getting the message as below during the ORACLE DB Installation phase,when I run the Oracle ./RUNINSTALLER in Bash Unix:-
[orasmd@SOLMAN SAP]$ ./RUNINSTALLER
oracle_stage is not set (OK)
oracle_base is not set (OK)
oracle_home is not set (OK)
oracle_sid is not set (OK)
oracle_home_name is not set (OK)
oracle_inst_group is not set (OK)
from_location is not set (OK)
tmp_netca_file is not set (OK)
tmp_dbca_file is not set (OK)
Working in /oracle/stage/102_64/database/SAP ...
The environment variable ORACLE_HOME is not set! abort ...
I have set the ORACLE_HOME env variable as below:-
ORACLE_HOME=/oracle/SMD/102_64
export ORACLE_HOME
But I get the same message again as above.
Do we need to set the ORACLE_HOME env variable in the BASH_PROFILE directly??? Coz I heard that if we set it with the Export command then the env is set only for the current instance and not permanently.
If so what is the exact entry I need to make in the BASH_PROFILE???
Rgds,
Abhijeet K

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