MDAC Error (OleDB) when connecting to Project Server

[newbie2k6]

Hello:

I am new to project server 2003 and WSS. This is an old project that has
been in place for over a year now. Project Server 2003, Sql Server 2000 and
WSS. A custom component (ASP.NET 1.1 app) has been added to this project
server which is using ProjectServer DB on SqlServer 2000. We have an ODBC
datasource "ProjectServerDSN" created to connect to DB and are using OLEBD
connection to connect to project server db. Lately, we are getting these
weird MDAC errors and the event log shows these 4 errors logged when this
MDAC error occurs. These MDAC errors show up once or twice a day and we
restart the iis to clear it off. I have spent lot of time debugging and could
not resolve yet. Any help or pointers would be of great help in the right
direction.

** We have MDAC 2.8 SP2 on WINDOWS Server 2003 SP1 installed

////// MDAC Error
Error - The following error occured: The .Net Data OLE DB Provider
(System.Data.OleDb) requires Microsoft Data Access Components(MDAC) version
2.6 or later.

////// event log error I
File: C:\Office\dev\project\WebClient\source\utility\pjadorsutil2.cpp
Line: 1691
Error Number: 0x80004005
Description: <Description><![CDATA[Assert Detected. The error code was also
included.]]></Description>
___________________________________

Component: Microsoft OLE DB Provider for SQL Server
Description: <Description><![CDATA[Cannot open database requested in login
'ProjectServerDSN'. Login fails.]]></Description>

//////////////////////////////////// 2nd error

Component: PjQuery
File: C:\Office\dev\project\WebClient\source\server\pjquery\CnxCookie.cpp
Line: 150
Error Number: 0x80004005
Description: <Description><![CDATA[Assert Detected for Virtual Root
'ProjectServerDSN'. The error code was also included.]]></Description>

///////// 3rd error log

Component: Unknown Component Name
File: C:\Office\dev\project\WebClient\source\server\pjnpesvc\PjNpeSvc.cpp
Line: 147
Error Number: 0x80020009
Description: <Description><![CDATA[Cube Processing Failed]]></Description>

///// 4th error log

Component: PjQuery
File: C:\Office\dev\project\WebClient\source\server\pjquery\PjGenericQuery.cpp
Line: 418
Error Number: 0x80004005
Description: <Description><![CDATA[Assert Detected for Virtual Root
'ProjectServerDSN'. The error code was also included.]]></Description>