In step number 5 is the project server url simply
http://server1/pwa ?That is
how we get to the project web access, is it the same for the "project server
url". I think this problem is very simple I just cannot put my finger on it

Also I did add an account "support" project server at
http://server1/pwa,
radio button for use windows account, check box for set as default, click OK
(Note there is no test button, i wish i could past in the screen capture!)
The after that windows closes (it warns me about not using https to connect
to PJ server) on the "Project Server Accounts" window i select radio button
for manually control connection state and hit ok
From the link you gave me:
Resolution
To create a Project Server login account, complete the following steps
1. Launch Microsoft Project Professional
2. Click Tools - Enterprise Options - Microsoft Office Project
Server Accounts
3. Click the Add button
4. Enter an Account Name for the login account, such as "Production
Project Server"
5. Enter the URL for Your Project Server instance
6. Click the Test Connection button to verify a valid Project
Server connection
7. Select the "Set as default account" option and click OK
8. Select the "Manually control connection state" option and click OK
9. Close Microsoft Project Professional and then relaunch the
software
10. Click the Connect button