I finally solved the issue. Here is what I did:
Created a user in Oracle 8i ( that is what I used) user manager, using the same name and password as your Windows NT login (I use Window 2000 server) assign role of DBA.
In Oracle Manage Server Cole, select system/preferences, click preferred credentials enter the same user/password just created in database you want to connect, listener and node (just three place) use normal not sysdba
Back to the console open up schema manager, select tools/data management/import. You should be fine.
If this does not work let me know. Good luck!
