Unable to Create Project from Template Using PowerShell

One thing you can check...someone will need to open the Admin module.

Go to your user account properties and check in "Settings Tab -> Work Area -> Can create and upgrade from folders"  That must be checked on to be able to create a Work Area (aka RichProject)

With this setting unchecked, a person as full admin will still not be able to create a Work Area.

Have tried this but still get the same error from the original post.

Any other suggestions?

The only other way I have been able to get the same error is to force my account trying to create the project as "Read Only" access at the parent folder.  To test if the problem is a permission problem, you can try and get the PW Admin team to adjust your setting for access control and turn it off temporarily (if it's already on).  

With this unchecked, your account will bypass all folder/file permissions and give essentially a "Super User" effect.  It is not a good idea to keep this off for normal user accounts, but for a test, it should help nail down what might be causing the issue.

The only other way I have been able to get the same error is to force my account trying to create the project as "Read Only" access at the parent folder.  To test if the problem is a permission problem, you can try and get the PW Admin team to adjust your setting for access control and turn it off temporarily (if it's already on).  

With this unchecked, your account will bypass all folder/file permissions and give essentially a "Super User" effect.  It is not a good idea to keep this off for normal user accounts, but for a test, it should help nail down what might be causing the issue.