Resolution
To delete an enterprise project template stored in the Project Server database, complete the following steps:
1. Log into PWA with administrator permissions
2. Click Admin - Clean up Project Server database
3. Select the Projects and To-Do Lists option
4. Select the "Delete the SharePoint team Web site for the specified project" option
5. Select the project template you wish to delete in the data grid
6. Click the Delete button
Note: To perform a mass deletion of project templates, projects, or resources in Project Server 2003 only, download and use the Project Server Cleaner tool, available at the following link:
Download Project Server Cleaner Tool