You can not create a Windows Login account using the above script. You need to create the Windows Account using Computer Management (Start --> Run --> Compmgmt.msc).
Expand Users & Computers, Clilck on User, Right click and create User, say you created a user named 'User1'.
Then you can execute the above script, by replacing the login and user name as [test-pc\User1]
Hope, this may help.
Thanks & Regards,
Sudeepta.
http://twitter.com/skganguly