Go to
www.groups.google.com
and paste the following string as is in the search box
"unable to remove database or create it" group:comp.databases.ibm-db2
The result will have a thread by Larry Menard ...
That thread should help you ...
Feel free to ask if you don't understand ...
BTW, in Unix, for each instance has its own system database directory ... If you are logged on as a non-instance owner, the system directory you see will be dependent on which instance's profile you are running in the .profile file ... Looks like your user 'schema' runs db2inst's )
HTH
Sathyaram