the only thing that the specified script is doing is compiling the invalid objects in the ppm schema. It is calling an Oracle utility, and, also given the error you faced, maybe there is a problem with the database - check if the Oracle logs mentioned anything at the same time.
We have upgraded one test environment to 8 SP1 from 7.1 SP8. We ran into some timesheet-sync problems (old issue). But what we are struggling with, is that any Step source that contained updates to budget entities, simply will not open when selecting edit stepsource in the Workflow.