On the same server as in my previous post, I received other errors (10 of them) for each user that would be added to the Project Server via the Active Directory Synchronization process. Here's the error:

Event Type: Warning
Event Source: Microsoft Project Server Tracing Eventlog Provider
Event Category: None
Event ID: 1
Date: 4/12/2007
Time: 3:44:09 PM
User: NT AUTHORITYLOCAL SERVICE
Computer: SERVER01
Description:
Component: AD Connector
File: AutoADProcess
Line: -1
Description: <Description><![CDATA[AD Res Pool Sync - PDS ADD Res failed : Firstname Lastname]]></Description>

Googling around suggest various KB articles - none of which worked. I began searching Google Groups which lead me to various posts regarding the Project Server username & the Active Directory (AD) username.

On a whim, I navigated to Start > All Programs > Microsoft Office Project Server 2003 > Configure Microsoft Office Project Server. In the Project Server Admin section, Actions > Manage users and groups. In the Project user list, each user was listed by their AD username, ie: "jsmith".

I changed each user manually to their full name as displayed in AD, for example "John Smith". Running a manual update through Project Admin, Actions > Server configuration > Update only when specified > Update Now, allowed the synchronization with zero errors in the Event Viewer.