Team Foundation Server (TFS) 2010 is already available and you can deploy and start using it. One ideal scenario for it’s installation is as follows:
1) Take a machine and Install Windows Server 2008 (Enterprise)
2) Create a User Named TFS with Admin rights
3) Then You need to install its Service Pack 2 (NOT R2), Just Service Pack 2
4) Install SQL Server 2008 (Enterprise Edition with all components. Mind you Install Reporting Services in Native mode (not the SharePoint Integrated mode) and DON’T Configure the Reporting Services NOW!
5) Download and Install WSS 3.0 + SP2 and You should be able to successfully complete its Configuration Wizard.
6) Once you do that you should be able to see the SharePoint site http://localhost
7) Now Go To the SQL Server Reporting Services Configuration Manager Tool and NOW CONFIGURE your Reporting Services, Use the tool in a step by step approach specifying User, Creating DBs etc. Every where specify the User TFS which you have created in step 2.
8) Once you do that you should be able to see the Reporting Service Portal and Web Service site on http://localhost/Reports ; http://localhost/ReportServer (or on which every URL you specified during Reporting Services Configuration)
9 ) When you Run the TFS set-up it will copy all the files to Program files which is equal to Installation and then it will start to configure after deployment / installation. In earlier version Install and Deploy was done at the same time.
10) Now Open up the TFS Setup choose which roles you want to deploy like probably you would only want to have TFS and Build Services and then specify the execution account (tfs user which you created).
11) Set-up will run Health Check (don’t worry if there are errors or warning, face them resolve them, they will be resolved, most errors are related to Account Security, System Reqs, Running Services)
12) Once Health Check is passed setup will start deploying Services, Databases and here if you again face errors it means that TFS is unable to make connection to SQL Server, SharePoint or the User has not sufficient Privileges etc.
13) Step 10 and 11 will take most of your time, but once TFS is deployed and Configure, you can further install Team Explorer to Start Creating and Managing Team Projects.