Have you off-loaded any of the Project Server machine configurations?

Such as Views Processing, Session Manager and Front-End on separate
machines? Or even a 2-way or 3-way database partition on a separate SQL
Server?

Plus the Service Pack needs to be installed in the following order:

1. SQL Server --> ProjectServer2003-KB887621-SQLFile-ENU.exe
2. Project Server --> ProjectServer2003SP2-KB887621-FullFile-ENU.exe
3. WSS (templates) --> ProjectServer2003-KB887621-WSSFILE-ENU.exe

Let us know how it turns out

--
Rolly Perreaux, PMP
Project Server Trainer/Consultant

IT Summit Series
Advanced Microsoft Technology Training
http://www.itsummitseries.com