If you create a workflow in SharePoint designer and if you use choose “When create a project, auto start this workflow”, then you may see that the workflow is not starting once you add an item. The reason
This behavior occurs because a security fix in Windows SharePoint Services 3.0 SP1 prevents declarative workflows from starting automatically under the system account. After you install Windows SharePoint Services 3.0 SP1, declarative workflows do not start automatically if the following conditions are true:
· The Windows SharePoint Services Web application runs under a user's domain account.
· The user logs in by using this domain account.
· The site displays the user name as System Account.
The details of this issue and the work around has been documented in the following
PingBack from http://blog.a-foton.ru/index.php/2009/03/31/issue-with-sharepoint-designer-workflow-to-start-under-system-acccount/
I faced this problem when we restored the application from dev to production via STSADM.
Thanks for the explaination.