Although you can upgrade directly from 2007 to 2010 (assuming all pre-requisites are met) this isn’t the case with 2003 – you have to go via 2007, and obviously you also need to get up to x64. To help make this process as painless as possible we have created the Virtual Migration Environment.
The Microsoft Project Server 2010 Virtual Migration Environment (VME) is now available on the download site. http://go.microsoft.com/?linkid=9729345
What is the VME?
The VME is a Windows Server 2008 R2 Hyper-V based image of a fully configured and operational SharePoint 2007 /Project Server 2007 farm with Project Pro 2007 and SQL Server 2005. This instance is intended to be used to migrate Project Server 2003 and SharePoint 2003 customers forward to 2007 as the first step of the two step migration to 2010.
The design goals were to create a standalone environment that could be run on a typical desktop/notebook and can be reset for multiple runs. It can also be used as a test environment for PDS to PSI conversion efforts.
Other useful resources for migration and upgrade: