I've tried the following stuff, none of which seems to work.
1. I've tried setting myself as the Default_Assignment_Owner for the Cost resource when I create it in the Enterprise pool, but I'm not able to do that through PWA/Project Professional Client.
2. I've tried adding myself as Assignment Owner for the assignment in the specific project though Project Professional, but that field shows up as disabled/un-editable.
3. Through the Statusing Web Service, I've tried ReadStatus() to read the list of assignments I'm eligible to post status updates for, but the cost resource assignment alone is not visible. If i disregard that, and construct ChangeXML to update actual cost for that assignment_uid of the cost resource anyway, and try to post the status update, it throws back an exception. (Invalid Assn_Uid)
4. I've tried reading in the ProjectDataSet, modifying the ASSN_ACT_COST or the ASSN_ACT_WORK for that assignment and using QueueUpdateProject() to update those fields, but that throws me back an exception as well, saying 'ProjectCannotEditCostResource' with Error code 1050.
Running out of ideas.

Posted it on several blogs and the Project.Developer NewsGroup, no replies till now.
Best Regards,
Subramanian