When I ran dm_error script for the below error, I got the following informaiton.

C:\Documentum\product\5.3\messages\dmsess.e:
[DM_SESSION_E_INIT_FAILURE1]
"Failure to complete %s initialization."
CAUSE: The program failed during database startup, calling one
of the various initialization procedures that set up parts of
the database.
ACTION: Check that the database system has been properly in
talled.
PARAMETERS: The number of the initialization procedure that
failed.

Can you please help me in tracking where is the error exactly, I am able to connect to database using sqlplus with out any issues. And I gave the passwords also correctly.

I am little bit confused.

Please suggest.

Make sure you database is up and running. Also, verify that you are using the supported version of Oracle that is in the Release Notes of the Content Server. Newer versions of the database may cause problems.