you are referring to employee center users?

correct when i try to use Project Manger center and restrict that role to Time and Expense only it still uses a Full User License.

hmm, i am not too familiar with that center - but when i was looking at employee center login, i don't believe i could create projects

Employee center licence is restricted to Expense, Time and Purchase order for themselves only. Once I did create a workflow to allow employee center role to create expense and PO for other users - a bit cheating to save license cost.