Background Information
The above error message is displayed when attempting to logon to Project Web Access after installing SP2. The system prompts for the EULA and throws the error.
Resolution
Microsoft Office Project Server Service Pack 2 requires three separate installations, one for the Project Server software, one for Windows SharePoint Services, and one to upgrade the SQL Server database. This error indicates that you did not run the update on the SQL database, or you did not run it correctly.
You must run the Upgdb112.cmd SQL script from the command line at a $> where $ is the drive letter where the script is located. You cannot run this command file by double clicking on it.
Refer to the following link for additional information about SP2:
http://support.microsoft.com/kb/887621/
To obtain SP2 for Project and Project server, as well as the installation instructions, visit the following link:
http://www.microsoft.com/downloads/details.aspx?familyid=413D99FD-2965-4FAF-BD48-3CBCC5031E46&displaylang=en