Project Server 2003 integration error with Project Professional 2002

[Randy]

I'm using Project 2002 Professional with Project Server
2003...

We can publish the plan, No problems..its in the DB and
can see all tasks..etc.. Resources can look, track
time, and update their tasks to the PM, No problems
When the Manager wants to accept and update the project we
get the following error.
***********************************************
You need Project Professional 2002 or Microsoft Project
Office Professional 2003 in order to perform this action.

If you are using either of these versions, verify that a
correct account for this project server has been set up
and selected by pointing to Enterprise options (tools
menu) and then clicking Microsoft project server accounts.
If you are unable to start project with the correct
account, contact your server administrator to make sure
the Enterprise features have been enabled on the project
server.
***********************************************



Facts:

This error only occurs when updating the plan on machines
that have Windows 98 SE. (Yes the Service packs are
installed)

Enterprise features are enabled on the server

Accounts have been set up in the DB and work when opening
project from the desktop

Project 2002 Professional is installed on the desktop


Any help would be appreciated!

Thanks
Randy