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Error: Connection to sde failed(-106). SDE schema object install not completed.

Error Message

The post-install procedure for ArcSDE 8.2 for oracle8i fails upon creation of the repository with this error:

"Connection to sde failed(-106)
SDE schema object install not completed."

Cause

This can be caused by a conflict in the PATH variable when ArcInfo Desktop or Workstation are installed on the same system.

Solution or Workaround

Edit the PATH variable so SDEHOME\bin (i.e. c:\arcgis\arcsde\ora8iexe\bin) occurs before ARCHOME\bin.