connect question

Using 8.1.7.0.0

When I use SQLPlus to start database following happens and I can not determine if this is correct.

Connect abc as sysdba
Enter password: ******
ERROR:
ORA-01034: ORACLE not available
ORA-27101: shared memory realm does not exist

connect abc/password as sysdba
Connected to an idle instance.
SQL> Entering the password as opposed to not causes this error and is correct? Received on Sun Apr 27 2003 - 09:39:00 CDT