This morning we delivered the final version of the patch to Team Explorer 2005 that enables it to work well with a TFS 2010 server.  Of course, it will also still work well against a 2005 or 2008 server.  You can download the update here:

and, of course, the update for Team Explorer 2008 has been available for a while: 

Good luck with it and let me know if I can help you,