Modify your initialization parameter file to set your COMPATIBLE parameter to at least "9.2.0."
Create a tablespace called SYSAUX that must be at least 500MB in size.
@?/rdbms/admin/catupgrd shutdown immediate startup
The process above is called a manual upgrade and is fully documented here.
Your database must be Oracle 8.1.7 in order for the upgrade to work. If your database was 8.1.5 or 8.1.6, then you will need to upgrade to 8.1.7, 9.0.1 or 9.2.0 first before upgrading to Oracle 10g.
Dig Deeper on Oracle database backup and recovery
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