I have been using TFS in anger for a bit now, thanks to Grant Halliday from Readify for the setup. Typically I had a bash at changing things, notably users ina a different domain and adding them to a domain group. Things from that point went pretty pear shaped; moral of the story: Get your users and domain trust relationships sorted first.
If you do change users you may find that your working folder on your machine is "used" by another user type.
The remedy to Working folder is already in use:
List the workspaces, per user, on your machine. Open a VS2005 command prompt:
tf workspaces /server:http://<server>:8080 /computer:<computer>-client
tf workspaces /computer:<computer> /owner:* /format:detailed
tf workspace /delete /server:http://<server>:8080 <computer>;<domain>\<client>
A freeware utility from Attrice that provides a GUI to manage your TFS Workspaces may also help
GertD on MSDN Magazine Feb 2007. Eric Lee on Top 10 Most Often Overlooked Features in Visual Studio...