Steve --
I have seen a situation similar to this at a client site at which the client
installed and configured their own Project Server instance. The client
erroneously added every user to Categories and specified Global Permissions
for every user as well. There were hundreds and hundreds of user accounts
for which they performed these actions. What they did not know was that you
control security in Project Server by adding people to Groups. When added
to a Group, the user picks up the Categories in that Group, and picks up the
Global Permissions for the Group as well. But if you add Categories and
Global Permissions settings to a user account, the system treats every one
of these as EXCEPTIONS to the Group permissions. In essence, the client
created thousands of exceptions for all of the users in the system, and
frankly, I don't think Project Server could figure out what any user was
allowed to do.
So, could this be the source of your problem? Have you manually added
Categories and/or Global Permissions to each user account in PWA? If so,
that might be the source of your problem. If not, good for you, and ignore
this post.