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Simple question, I've been attempting to read through the MSDN and Googling, however I'm not finding anything that confirms yes or now.

MSDN gives a walk through for Server 2008, but Project Server 2007 came out before 2008, so I would imagine it would work on 2003. Just have no confirmation of it.

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Yes, as long as it is SP1 or later. Here is the associated TechNet documentation:

http://technet.microsoft.com/en-us/library/cc197379(office.12).aspx

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