Error http the request failed with http status 401: unauthorized

Hi,<o:p></o:p>

We are currently developing a Web Part for a
dashboard that connects from SharePoint 2010 to Project Server, we are trying
to connect via the PSI web service and fetch the project data but it is giving
the same error"The request failed with HTTPstatus 401: Unauthorized". We are having a huge
issue with gaining authorization through the PSI and cannot figure out what the
problem is. We are using Project Server 2010, SharePoint 2010 and Visual Studio
2010.<o:p></o:p>

The person developing this has administrative
rights on both servers and it is running on his account. However, this is his
first experience with Project Server. Could some provide some guidance?<o:p></o:p>

Does anyone have any suggestions?<o:p></o:p>

Thanks,<o:p></o:p>

Aba

<o:p></o:p>