Did you check the path on the machine? Make sure Oracle/bin... path is listed.
Also make sure repository server is installed in a folder that does not contain spaces.
Is the repository an empty ORACLE database? I cannot recall that the installation script tries to drop objects first. [I've installed Powercenter 7 last month on Oracle 9i, without a hassle]. Make sure that user executing script has rights to create objects. It does not need to be a DBA account.
You cannot create a repository if already one exists..
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