db_creation

Next steps are :

1/ connect to the instance
2/ startup nomount pfile=<path_to_newdb_pfile> (you can copy/paste initorcl.ora, then rename and edit it for newdb)
3/ create database statement (refer to official documentation at http://download-uk.oracle.com/docs/cd/B19306_01/server.102/b14200/statements_5004.htm)
4/ run additional scripts depending on your needs (<ORACLE_HOME>/rdbms/admin/catalog.sql and catproc.sql are required for a standard use)
5/ shutdown immediate
6/ cold backup
7/ startup
8/ enjoy your fresh NEWDB !

This is the pfile of my orcl

please watch the first five lines.. other lines start with *. but this is not starting with *. should I want to delete that..

boss please advise me asap

orcl.__db_cache_size=100663296
orcl.__java_pool_size=4194304
orcl.__large_pool_size=4194304
orcl.__shared_pool_size=54525952
orcl.__streams_pool_size=0
*.audit_file_dest='C:\oracle\product\10.2.0/admin/orcl/adump'
*.background_dump_dest='C:\oracle\product\10.2.0/admin/orcl/bdump'
*.compatible='10.2.0.1.0'
*.control_files='C:\oracle\product\10.2.0\oradata\orcl\control01.ctl','C:\oracle\product\10.2.0\oradata\orcl\control02.ctl','C:\oracle\product\10.2.0\oradata\orcl\control03.ctl'
*.core_dump_dest='C:\oracle\product\10.2.0/admin/orcl/cdump'
*.db_block_size=8192
*.db_domain=''
*.db_file_multiblock_read_count=16
*.db_name='orcl'
*.db_recovery_file_dest='C:\oracle\product\10.2.0/flash_recovery_area'
*.db_recovery_file_dest_size=2147483648
*.dispatchers='(PROTOCOL=TCP) (SERVICE=orclXDB)'
*.job_queue_processes=10
*.open_cursors=300
*.pga_aggregate_target=16777216
*.processes=150
*.remote_login_passwordfile='EXCLUSIVE'
*.sga_target=167772160
*.undo_management='AUTO'
*.undo_tablespace='UNDOTBS1'
*.user_dump_dest='C:\oracle\product\10.2.0/admin/orcl/udump'

Yes, it is possible (but not always wise!) to have two or even more Oracle databases on a Windows server.  You have to make very sure that all of the data, log, control and init files are different for each instance!  (I recommend using separate directories for the separate databases.) Then you need to tune the SGAs to utilize the RAM that you have efficiently without causing Windows to do excessive memory swapping to disk.  If your Windows swapfile activity goes up, your performance will really suffer.  I hope that you have multiple SCSI disk drives in your server, and that they are not all RAID5, or that you have a NAS or SAN for the Oracle temp, log and datafiles.

Ploubier has given you most of the steps you need if you really want to do this, but he/she forgot the first step:
You need to set your ORACLE_SID environment variable to SID of the database you want to work with.  That is done at a command prompt like this:
set ORACLE_SID=NEWDB

Then you start sqlplus (from the command prompt) and type:
connect sys as sysdba [Enter]
(provide the password for SYS when prompted)
then continue with step #2 from ploubier's comment.

The file you posted lastly is NOT your parameter file (pfile) but your server parameter file (spfile). You can NOT edit this one.
To create a pfile, use the command below :

CREATE PFILE FROM SPFILE;

You'll find the file INITorcl.ora in your <ORACLE_HOME>\database. Edit the db_name and the locations (a search/replace would be smart) and go on !

Alternatively, you can have a look at Database Configuration Assistant (DBCA), which is available in your Start menu. It will guide you through the DB creation process.