A host language program call referenced a cursor with no associated parsed SQL statement. A SQL call (for example, OSQL3) must be used to pass a SQL statement to Oracle and to associate the statement with an open cursor. A cursor must already have an associated SQL statement if referenced in any of the following calls: DESCRIBE, NAME, DEFINE, BIND, EXECUTE, and FETCH.
Do the SQL call, for example, OSQL, to pass the required SQL statement before referencing the cursor.
The Oracle 10.2.0.1 client is your problem, find out what your
ArcSDE on this box isn't patched to
anything recent, either. Make sure your client and database are the same.