prim1662:When copying a project that does not have the Copy Activity Option checked for Resources & Role Assignments, the resources and roles appear in newly copied project.

This known problem in Project Manager has been corrected in version 4.0.

Workaround:
Add the following line under the [Options] section of the PM.INI file. This setting will bypass the Copy/Paste Stored Procedure and may cause degradation in performance when copying large projects.

[Options]
UseSPToPasteProject=0