I also hit same issue, does anyone have got a solustion for this?
I download this Oracle VM Manager 3.2.1, download bug ID [16104753|https://updates.oracle.com/Orion/PatchDetails/process_form?aru=15847046] , this should be pre-release OVM 3.2.1 version.
Please help to check.
Install log location: /net/slc04wkd/scratch/ovm-manager-3-install-2013-01-19-001554.log
This issue was caused by root user cannot su to oracle user.
The W/A is to disable ypbind service and run createOracle.sh to make the oracle user a local one.
How to disable ypbind? issue following command based on your host env,
service ypbind stop
More details, pls check Bug 16416238 - manager installer should add a prereq check that root can su to oracle user