Background Information
Project Server displays the above Spooler error because the project manager has published a project containing one or more local resources in an environment where the Project Server administrator has denied the automatic creation of user accounts in Project Web Access. Local resources are created in a project when the project manager types the names of resources in the Resource Sheet view of the project.
Resolution
The project manager should complete the following steps:
1. In the Spooler window, click Actions – Undo to cancel the publishing operation that caused the error
2. Close the Spooler window
3. Click View – Resource Sheet
4. Locate the local resources in the project (a special indicator appears in the Indicators column for each local resource)
5. Double-click the name of the first local resource
6. Set the Workgroup value to None and click OK
7. Repeat steps #3-6 for each local resource
8. Click View – Gantt Chart
9. Publish the project using Collaborate – Publish – All Information