Hi HomerJ,
This can be a common issue when the project's DB schema is not available. As can bee seen in these two threads (different DBs in each thread here, one SQL and one Oracle):
http://eyeontesting.com/questions/8249/unable-to-connect-to-certain-projects-in-almqc.html
https://community.saas.hpe.com/t5/Quality-Center-ALM-Practitioners/Failed-to-delete-Projects-Domain-in-HPQC/td-p/1076372
If the project hasn't been utilized in some time and the password of the users associated with the project have changed but weren't updated then it is possible that this is the issue.
Could you elevate the log level (see this thread for elevating the log file levels if unsure: http://eyeontesting.com/questions/7530/how-can-the-log-level-be-changed-in-alm-qc.html ) and then repeat the operation taking note of the time attempted and the user associated with the operation and then provide those log files to us for more distinct verification of what is happening as that will provide you more information for the support team to work with.
It could possibly be that it is an error due to a password or username change (as was a previously supplied resolution possibility).
The schema that you should be looking at is the following from the error message: __db and it should be on your currently used DB. This is the default naming structure of project schemas within the DB is the following: DOMAIN_PROJECT NAME_DB.
As for deleting the project. If you are just interested in deleting it, and the db schema doesn't exist your best method at that point would be to remove the project name row entry from the PROJECTS table within the QCSITEADMIN_DB schema (or whatever your corporation chose for this schema to be named, provided name was the default name) on your DB. Once the project is removed from that table then stop and restart the services and the project will be removed from the Project's list within siteadmin. You can then remove the project repository folder that applies to this project from the repository (you could delete or move to an archive location, remember deleting will remove all traces of it and inhibit restoration if needed in the future.
Hope this helps,
Dan