Here's what I tried:

1: created project manager domain account

2: added to the adam Namespace Administrators group:
   gssutil.exe /g+ adm: n:Domain\ProjectManager

3: Added to Version Control Administrators group
 local group on the app server: VSTEAMSCC Administrators

4: Added to sharepoint service role
 Administrator of the root site

5: Created new Portfolio Test1:
    ERROR:
    Event Description: Task "WssPortal" failed.
    Exception Type: System.Net.WebException
    Exception Message: The request failed with HTTP Status 401: Unauthorized.

6: Added project manager account to app server administrators local group
7:  Created new Portfolio Test2:
    ERROR:
    Event Description: Task "WssPortal" failed.
    Exception Type: System.Net.WebException
    Exception Message: The request failed with HTTP Status 401: Unauthorized.
8: Added project manager account to domain administrators
9: Created new Portfolio Test3:
     ERROR:
    Event Description: Task "WssPortal" failed.
    Exception Type: System.Net.WebException
    Exception Message: The request failed with HTTP Status 401: Unauthorized.

10: Gave up and logged in using the domain administrators account (the same account I installed all the team system stuff under).

11: Created new Portfolio Test4.  Still received some different security errors.  I'll have to play some more later.