I am experiencing some issues with source leveling, basically it seems to miss resource and causes them to do many tasks on one day which in some cases totals 32hrs in an 8 hour day, while in the project the same resource levels correctly.

The rules I am using

MS Project 2003 SP3
Resource is 50% allocated
Resource leveling by ID and "Day by Day"
Allow Remaining work to be split
Set the Project Tracking to resource from Today onwards

Is there anything else that can influence the resourcing.