- check whether the project server 2003 database is enlisted to the trusted sites list in the internet explorer. use fully qualified server name rather than just local computer name.
- see whenther Authentication in security setting is set to , Automatic Logon with Current User Name and Password. if not make it.
- Check the ActiveX settings for the internet explorer. what i did in my IE is that i put all enabled in any option related with ActiveX. works real good when you are intranet environment.