Hi Robert,
Thanks for the inputs, but I am using admin account to create friend. Can you please tell me what kind of special permissions required for the admin to create friend successfully. Please refer the error that I am getting is:

The remote server responded to the request to generate provisional OAuth consumer key with HTTP status code 404 error ID CRJAZ1341E

com.ibm.team.repository.common.TeamRepositoryException
com.ibm.team.repository.service.internal.oauth.OAuthRestService.postRequestRemoteProvisionalKey(OAuthRestService.java:179)
sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:60)
sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:37)
java.lang.reflect.Method.invoke(Method.java:611)
org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord.invoke(ExportProxyServiceRecord.java:370)
org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord.access$0(ExportProxyServiceRecord.java:356)
org.eclipse.soda.sat.core.internal.record.ExportProxyServiceRecord$ExportedServiceInvocationHandler.invoke(ExportProxyServiceRecord.java:56)
$Proxy81.postRequestRemoteProvisionalKey(Unknown Source)
sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:60)
sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:37)
java.lang.reflect.Method.invoke(Method.java:611)
com.ibm.team.repository.servlet.AbstractTeamServerServlet.doModelledRestService(AbstractTeamServerServlet.java:528)
com.ibm.team.repository.servlet.AbstractTeamServerServlet.handleRequest2(AbstractTeamServerServlet.java:2174)
com.ibm.team.repository.servlet.AbstractTeamServerServlet.handleRequest(AbstractTeamServerServlet.java:1994)
com.ibm.team.repository.servlet.AbstractTeamServerServlet.service(AbstractTeamServerServlet.java:1752)
javax.servlet.http.HttpServlet.service(HttpServlet.java:722)
org.eclipse.equinox.http.registry.internal.ServletManager$ServletWrapper.service(ServletManager.java:180)
org.eclipse.equinox.http.servlet.internal.ServletRegistration.service(ServletRegistration.java:61)
org.eclipse.equinox.http.servlet.internal.ProxyServlet.processAlias(ProxyServlet.java:126)
org.eclipse.equinox.http.servlet.internal.ProxyServlet.service(ProxyServlet.java:76)
javax.servlet.http.HttpServlet.service(HttpServlet.java:722)
org.eclipse.equinox.servletbridge.BridgeServlet.service(BridgeServlet.java:120)
com.ibm.team.repository.server.servletbridge.JazzServlet.service(JazzServlet.java:68)
javax.servlet.http.HttpServlet.service(HttpServlet.java:722)
org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:305)
org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:210)
com.ibm.team.repository.server.servletbridge.BridgeFilter.processDelegate(BridgeFilter.java:131)
com.ibm.team.repository.server.servletbridge.BridgeFilter.doFilter(BridgeFilter.java:152)
org.apache.catalina.core.ApplicationFilterChain.internalDoFilter(ApplicationFilterChain.java:243)
org.apache.catalina.core.ApplicationFilterChain.doFilter(ApplicationFilterChain.java:210)
org.apache.catalina.core.StandardWrapperValve.invoke(StandardWrapperValve.java:224)
org.apache.catalina.core.StandardContextValve.invoke(StandardContextValve.java:169)
org.apache.catalina.authenticator.AuthenticatorBase.invoke(AuthenticatorBase.java:581)
org.apache.catalina.core.StandardHostValve.invoke(StandardHostValve.java:168)
org.apache.catalina.valves.ErrorReportValve.invoke(ErrorReportValve.java:98)
org.apache.catalina.authenticator.SingleSignOn.invoke(SingleSignOn.java:336)
org.apache.catalina.core.StandardEngineValve.invoke(StandardEngineValve.java:118)
org.apache.catalina.connector.CoyoteAdapter.service(CoyoteAdapter.java:407)
org.apache.coyote.http11.AbstractHttp11Processor.process(AbstractHttp11Processor.java:987)
org.apache.coyote.AbstractProtocol$AbstractConnectionHandler.process(AbstractProtocol.java:579)
org.apache.tomcat.util.net.JIoEndpoint$SocketProcessor.run(JIoEndpoint.java:309)
java.util.concurrent.ThreadPoolExecutor$Worker.runTask(ThreadPoolExecutor.java:897)
java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:919)
java.lang.Thread.run(Thread.java:736)

This looks like it may be a permissions problem. If you're using the OSCL integration, you may want to check to make sure that you have the friends configured correctly.