Unable to connect to Project Server from client (MS Project Professional 2007) - Accounts corruption issue!

Environment: Project Professional 2007 SP2/ Project Server 2007
Issue:

Last week one of PM brought up an issue in accessing his schedule using MS Project Professional 2007 in Project server 2007 environment. When he tries to login to connect with Project Server, he gets the following error

PM was not able to close this window as it freeze the MS Project Pro 2007 application. He first tried to kill MS Project application in Windows Task Manager but could not do that. Eventually, he was able to kill Project 2007 application from “Processes” tab by selecting WinProj.exe (as shown screenshot below)

When I tried to see the exact error, it showed me the following

Note: PM had no issue in opening any schedule as a standalone basis i.e. without connecting to Project server. This was happening only when he picks an account created to cnnect with Project server

Solution:

 After an investigation, we figured out that the account created to connecting to Project Server got corrupted for some reason. Deleting the old account and recreating a new account solved this issue like Bingo…