Creation of a new instance, by using 'db2icrt' command fails with,
DBI1295E The instance list could not be updated.
'db2icrt' is being executed with the ROOT privileges.
'db2icrt' calls 'db2iset' to add the instance to the global registry. This fails, as can be seen in from the debug traces,
+ /db2test/software/ibm/db2/V10.1/instance/db2iset -a db2inst1
+ [ 255 -ne 0 ]
DBI1295E The instance list could not updated.
Diagnosing the problem
If LD_LIBRARY_PATH is set in the '.profile' file of the ROOT user, it can be commented out, and 'db2icrt' should be executed again.