Hi,
Because of the security update included in SP1, the workflow cannot automatically System Account
if you logged in as System Account, the "Setup" workflow in Resources list will not automatically start.
Basically, if the workflow does not start automatically or fails to start, you will not be able to make reservations, as a result, the resource will appear as fully reserved forever.
Please use another account and try again.
Or you could use a dedicated account as the System Account and you could follow the KB934838 (http://support.microsoft.com/kb/934838) to change the service account.
Hope the information can be helpful.
-lambert
Lambert Qin | Microsoft Online Support Engineer
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