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Event ID: 16 Source: MSSOAP

Soap error: <error>.
In our case, running Project Server 2003 on Windows 2003 Server, we found this error occurring every 10 seconds in the Application log. We isolated it to the Project Server Connector Service. When we stopped this service, the errors stopped. The service was logged on as Local System, but when switched to a domain account with local administrator permissions, the errors went away. For some strange reason a local administrator account did not fix it.
From a newsgroup post: "I was having a similar issue. I have a single server running WSS and Project Server. I have been able to correct and re-create the problem with the following configuration changes. When other users have reported correcting the problem with a re-install, I imagined the installer sets the configuration file correctly. The steps are listed below:

If your Project server is linked correctly to WSS, you should not be able to access Microsoft Update Services. To get Windows Update Service Working run the following command:
proxcfg d

To get ProjectServer linked back to WSS enter the following (since my WSS server and ProjectServer are on the same host I am using that host name as the proxy server):
proxycfg -d -p "YourProxyServer" ";ServerName;IPAddress; FQDN"

You can run both commands without a restart of the applications or OS".
If you are running Windows 2000 SP4 and get SOAP errors check out MS article ME825075. Installing the SOAP Toolkit 3.0 solved the problem for me.

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