
Just coz I keep forgetting should mean somebody somewhere is looking for this information too. Just wishing the install process for team Foundation were to be a straightforward isn’t enough. Here, here is the walkthrough just for the keepsakes. No, it is not at all a bad idea to keep source control virtualized, in fact it could be advantageous simply because it can be isolated even further due to the virtual setup.
Everybody knows (or should know) the advantages Hyper-V gives over traditional servers. Reduced hardware cost is one thing, I’m more concerned about the additional power saving and the flexibility provided by the whole setup. Microsoft Visual Studio Team System 2008 Team Foundation Server is a team collaboration platform that combines team portal, version control, work-item tracking, build management, process guidance and business intelligence into a unified server. Unfortunately, Team Foundation Server installation isn’t quite straightforward (at least as much as I would like it to be). You can download the trial version from here
Before you go any further, please read the standard disclaimer1.
Pain points:
- For starters, the 2008 version is just partially x64 capable. The core still is dependent upon x86 platform. So, FFS, I’d stick with just an x86 install, not mix and match x86 and x64 platforms.
- The dual installation option, imho plain sucks. Its just a nightmare waiting to happen when a few months down the line, key admin people change, account passwords get out of sync or worse, one of the machine crashes.
- The dependency on SQL Server which in turn depends on a restricted IIS installation which in turn needs a Sharepoint install is just nuts if somebody tries to customize any step in the install.
- The three/two accounts required to setup TFS can be a real deal breaker in a really large corporate install (which is where TFS truly shines) coz its difficult to get dummy domain accounts through the arcane IT policies.
Following is the full install process illustrated via pictures, starting from an already functioning Microsoft Windows Server 2008, x86 image. 
Step 1. Goto Control Panel –> Add/Remove Programs-> Add remove Windows Components

Step 2. Select Application Server->Details and choose the components below

Step 3. You might need your Windows 2003 Server CD/DVD if you do not keep a local I386 copy. Finish the IIS installation

Step 4. Mount the SQL Server 2005 CD/DVD and select Install Server Components. Choose Default Instance and mixed mode authentication when prompted for. All services should be selected to auto start and running with the built-in System account.
Step 5. After installing MS SQL Server 2005, Goto Windows Update and install the latest Service Packs
Step 6. Verify that all SQL Server Services are running

Step 7. Mount Team Foundation Server DVD and begin the installation process.
When asked for the database name, provide the local machine name and let the Pre-installation check begin. There would be a few warnings related to recommended hardware requirements which can be skipped.

Step 8. Goto the Domain Controller and Create a new domain account for example, TFSSERVICE. Under Account Properties Tab, Set the “Account is sensitive and cannot be delegated” option checked. Create another domain account (for example, TFSREPORTS) on the domain controller as well.

Step 9. Back on the Team Foundation Server machine (being installed), open Control Panel-> Administrative Tools –> Local Security Policy MMC. Under Security Settings-> Local Policies –> user Rights Assignment, add TFSREPORTS account to the “Allow logon locally” security policy. Add TFSSERVICE account to “Allow logon as a service” policy. Yeah one could wish this could be automatically done by the installer but well …
Step 10. Use the TFSREPORTS account for the reporting account and TFSSERVICE for the other two. Now just zip through the TFS Setup wizard dialogs as shown below and then give the installer a few minutes (or hours) to complete.
Once completed, hit Windows Update and install the latest Service Packs or install the Team Foundation Server Service Pack 1 directly from Microsoft. If you’re like me, you’d likely install the Team Plain or (now called) Visual Studio team System Web Access 2005 Power Tool (Gah! These extra long product names) separately but not over the 2008 version.
Final Step (Optional). Copy the tfc directory from the TFS DVD and share it as TFSClient for everyone on the network. This completes the Microsoft Visual Studio Team System 2008 Team Foundation Server install on a virtual machine inside of Hyper-V.
Flames, comments welcome.
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This posting is provided "AS IS" with no warranties, and confers no rights. You assume all risk for your use. Microsoft products/ marketing names used above are properties of Microsoft Corporation.