SharePoint/ProjectWise Web Server Single Sign On Setup

Hello,

I am trying to set up single sign on for SharePoint/Web Parts but I am running into a road block. I have followed the technotes and the implementation guide to set everything up but user permissions aren't carrying through as I would expect.
 
I set up a delegate user to log on to the web parts expecting that other users who log on to the site will only see the projects/folders they have rights to see but this doesn't seem to be the case. Other users are still able to see everything the delegate user can see which we don't want. The delegate user has been enabled as a delegate user through PW admin, configured them as the delegate user on the Web Servers, and we have added the SharePoint Servers to the trusted server section in the Integration Server's dmskrnl file.
 
Any help would be appreciated by anyone who might have had some similar issues with this setup.
 
Thanks,
Jutin