Deborah asks:

One of our PM's, whose project has been on server for at least 4 months now had an unexpected error when re-publishing yesterday.

The error he received was "the manager cannot create the resource account (0x8C40017)"...He has re-published in the past and had not received this error.

Gary Chefetz answers:

This error indicates that your PM has a local resource in his plan, and the workgroup method for this resource is set to default, which in your case, is Project Server set not to allow Project Managers to create accounts for resources in Project Server. Do you want to allow this local resource? Do you want this resource to have a logon account?

If your goal is to allow the local resource without creating an account for them, then have your PM set the workgroup value to none in the resource information dialog.

If your goal is not to have local resources, have your PM remove the local resource from the plan and substitute an Enterprise Resource

If your goal is to allow the local resource and allow that resource to logon to PWA, then either create an account for the resource manually, or change the permissions on your Project Server to allow PMs to create user accounts when publishing.