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Check PTWEBSERVER password for the webprofile. Change it to PTWEBSERVER, all caps.
Like said in the previous post, this error come when Peoplesoft cannot authenticate the user defined in the webprofile that is provided in the configuration.properties.
Make sure there is an existing PeopleSoft user and correct password (default PTWEBSERVER) provided in the webprofile to be found via
PeopleTools > Web Profile > Web Profile Configuration