Michelle --
This is an excellent question! If the Project Server administrator leaves
the default Work Type setting as Nonworking and the Approve field set to Yes
for the Vacation category on the Edit or Create Administrative Time page in
PWA, then here's what happens:
1. Resource clicks the Plan Administrative Time button on the My Timesheets
page.
2. Resource enters 5 days of Vacation time in the future and saves it.
3. Timesheet Manager approves the 5 days of future Vacation time.
4. Project Server 2007 adds the Vacation nonworking time as a new
nonworking instance on the resource's calendar in the Enterprise Resource
Pool.
5. Project Server 2007 adjusts the resource's future availability, based on
the nonworking time Vacation instance.
If your Project Server administrator has changed the Vacation category in
any other way, then the above process would not necessarily work the way I
have detailed. Hope this helps.