Hi ginoskie,
Let's start with the easy one first. SP4 is a full install which you can run on a clean system - no previous service packs required.
Ok, so in a Client Event, you assign a worklist item to a queue called 'Approvers' for example. When a process instance is created and the appropriate worklist item is created, you can find the item in K2.net Service Manager but not in the Workspace Worklist. If you redirect the item to the same queue 'Approvers', the item is available in the Workspace Worklist. Is this correct?
If so, I would guess the problem lies in the Client Event creating the worklist item. Look for code similar to 'K2.AddWorklistItem(...)'. Make sure there are no leading or lagging spaces in the Queue Name passed to this method.
HTH,
Ockert
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