The Project_ID column should be, and is, an identity column which will create a new Project_ID if @pProjID = null. 

The code snippet that you had listed IS part of my SP.  I want to re-print this here: 

If this SP worked perfectly in SQL Server 2000, why does this not return the ID value in SQL Server 2008?

CREATE proc dbo.hip_InsUpdProj
(
@pProjId         int,
@pProjName varchar(255),
@pProjDesc varchar(1000),
@pProjNotes varchar(8000),
@pProjDate datetime,
@pProjType int
)
as


declare
	@RC int,
	@ROWS int
begin


if @pProjId = null
	begin
	insert into hip_Project (ProjectName, ProjectDesc, ProjectNotes, dtCreated)
	values (@pProjName, @pProjDesc, @pProjNotes, @pProjDate)
	end
else
	begin
	update hip_Project
	set ProjectName = @pProjName,
		ProjectDesc = @pProjDesc,
		ProjectNotes = @pProjNotes,
		dtCreated = @pProjDate,
		deleted = @pProjType
	where Project_Id = @pProjId
	end


select @RC = @@error
if @RC <> 0
	return @RC
end


--print SCOPE_IDENTITY()


if @pProjId = null
	SELECT SCOPE_IDENTITY() as newProjectID
else
	SELECT @pProjId as newProjectID
return 0


GO

Is there something new in SQLServer 2008 that I need to account for in this SP?