There have been a lot of requests from folks wanting to use TFS without Active Directory.  Since several questions and answers in comments on Jeff Beehler's blog dealt with this, I thought it's worth mentioning in a post that TFS beta 3 supports workgroup installations, and Active Directory is not required in that configuration.

[Update 09/22/05]  Doug's comment below addresses another long-standing issue: "Additionally, beta 3 now supports Windows 2000 Active Directories as well as the previously supported Windows Server 2003 version."