It is possible to copy Defects from one project to another

1. Open the project to be copied from
2. Enter the Defects module
3. Click on Edit --> Select All
4. Click on Edit --> Copy
5. Click on Tools --> Change Project --> Select the project you will be copying the defects to
6. Once logged into the project, Click on the Defects module
7. Click on Edit --> Paste

Things to keep in mind...

- As the defects are copied over the Defect IDs will be changed they will start with Defect ID 1, 2, 3, and so on. Additional projects Defect IDs will continue where the last project left off
- If you have any custom Defect fields in the project copied those fields will be copied but unless they have been created in the project that you are copying to the information in those fields will be dropped.
- If any of the custom fields are using lists, you may also need to recreate those in the project that the defects are copied to.
- Even if there are identical Releases and Cycles in the project being copied to that information is removed.
- Attachments are copied over.
- The same will apply when you copy the information out of the archive project... Fields will need to be present, defect IDs would change, etc.