Project Server 2010 cannot open project files from the Project Web App with Citrix XenConverter

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I come across an interesting third party problem that I wanted to share with you.

One Citrix VM built on WinXP SP3 with IE8 could not open via the internet explorer in the PWA, Project Files with the Project Client. Opening
Files from the Project Client was working.

 The Problem was caused by Citrix XenConverter (this is converting the workload from a Server or Desktop virtual machine to the XenServer.)

 This is a Known Limitations in Citrix:

Open Files – XenConvert cannot copy a file in use by another application on Windows XP. To ensure that a conversion includes a file, close that application before converting.

https://support.citrix.com/servlet/KbServlet/download/28774-102-666402/XenConvertGuide.pdf

After the XenConverter was disabled everything was working fine