This delegate user\setting is for use with ProjectWise Web Server, to simulate single sign on for users using ProjectWise Web Parts. When this setting is on, it authorizes this user to request passwords for other users who are connecting to a datasource from ProjectWise Web Parts, when those other users are attempting to log in with their Windows-based ProjectWise user account. For this setting to work, you must also go to the computer on which ProjectWise Web Server is installed and specify that this user is the delegate user.
No, the permissions of the delegate user are not carried through.
No, the owner of the objects created will remain with the user who created them.
The ProjectWise Administrator Help.