Hi folks!
These are the steps that I've taken to install a working TFS Single Server environment.
I've run this guide 4 times, and been successful everytime now.
My setup is totally a Lab environment:
1 AMD X2 3800+, 4GB RAM, running Windows Server 2003 Std with Virtual Server 2005 Std
1 Virtual Machine 256MB, running Windows Server 2003 Std as Domain Controller and DNS
1 Virtual Machine 2GB, running Windows Server 2003 Std, SQL2005 September CTP, SharePoint Services 2.0 with SP2 and TFS beta3
1 Virtual Machine 256MB, running Windows XP with SP2, Office 2003 Pro with SP2 Full Install, Project 2003 Pro with SP2 Full Install, Visual Studio 2005 RC1 and Visual Studio Team Explorer (Team Foundation Client from the Team Foundation Server beta 3 DVD)
No firewalls enabled on any machine!
1. This guide assumes that the DomainController is already setup and working and the TFS machine has just been added to the domain.
2. Obtain three user accounts:
A user account to run setup (for example, Domain\TFSSETUP).
A user account to run Team Foundation services (for example, Domain\TFSSERVICE).
A user account to access SQL Server Reporting Services data sources (for example, Domain\TFSREPORTS).
3. Add the account for running Team Foundation Server Setup (for example, Domain\TFSSETUP) to the local Administrators group.
Also manually add the Log on Locally privilege for TFSSERVICE and TFSREPORTS for the server.
4. Install Internet Information Services (IIS) 6.0. Enable ASP.NET, but do not install FrontPage Server Extensions.
5. Install SQL Server 2005 September CTP as the default instance of SQL Server on this computer.
After the installation, use the Surface Area Configuration Tool and Enable Local and Remote Connections.
Please follow the Microsoft TFS Guide (TFSInstall-v50926.chm) for greater detail.
6. Install Windows SharePoint Services 2.0 with Service Pack 2 for use with Team Foundation Server. Team Foundation Server Setup will finish configuring Windows SharePoint Services for you.
Run the downloaded self-extracting installer file (stsv2.exe) using the following command line:
C:\install\STSV2.EXE /C:"setupsts.exe /remoteSql=yes /provision=no /q"
7. With Windows Sharepoint Services 2.0 SP2 you must do the following to set the authentication mode back to NTLM.
To set Authentication mode on IIS Site 1 (Default Web site) and Site 2 (Sharepoint Admin) to NTLM:
cscript adsutil.vbs set w3svc/1/NTAuthenticationProviders "NTLM"
cscript adsutil.vbs set w3svc/2/NTAuthenticationProviders "NTLM", if you don't add this one as well, you will get permission denied when creating the Sharepoint site!
To check Authentication mode on IIS Site 1:
cscript adsutil.vbs get w3svc/1/NTAuthenticationProviders
8. Log on as Domain/TFSSETUP
9. Install Team Foundation Server and choose Single Server mode.
Please follow the Microsoft TFS Guide (TFSInstall-v50926.chm) for greater detail.
10. To create team projects, users must also be a member of the Windows SharePoint Services Administrator role, and a member of the SQL Server Reporting Services Content Manager role. For more info about roles and permissions, please visit this site for more info: http://blogs.msdn.com/vstsue/articles/422773.aspx
11. On the client side.
Install Windows XP w SP2 and patch it fully via microsoftupdate.
Add it to the domain and make domain/TFSSETUP a local admin.
Install Office Excel 2003 fully and patch it fully via microsoftupdate.
Install Office Project 2003 fully and patch it fully via microsoftupdate.
Install VS2005RC1.
Install VS2005 Team Explorer from the TFS beta3 DVD.
12. Start VS and add a Team Foundation server.
Create a Team Project and be sure not to use any spaces!
As said before, I've been successful 4 times now, only in this restricted Lab enivronment though.
Take care and Have fun!

A "Complete" TFS b3 install guide.
VirtualHuck
Euclidez
robertbain
- uninstall VS Team Suite RC 1 using the uninstall tool from: http://msdn.microsoft.com/vstudio/support/uninstall/default.aspx
- we found that the tool didn't uninistall everything so after the tool completed we manually uninstalled the remaining items in the order specified (remember .NET framework removal last)
- install Team Explorer from TFS Beta 3 refresh CD
- install VS Team Suite Trial edition (selected Custom install with SQL Express install not selected)
The entire upgrade procedure took less than an hour and half.
Hope this helps.
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Sarah Cameron - InCycle Software