Recently I helped a customer who was having trouble creating a team project.

• They tried to create a project by name “Project1”
• It failed saying that it could not connect to Windows SharePoint Services (WSS)
• They fixed the permissions to sharepoint
• They can create a new team project by the name “Project2"

But, when they try to create a project by name ”Project1”, it failed with the following error:

TF30321: The name you typed is already used for another team project on the team foundation server. Type a unique name for the new team project.

In the past, I've seen this error if you don't close the Project Creation Wizard dialog and try to use a name that you've just deleted using tfsdeleteproject.exe. But that wasn't the problem in this case.

The usual fix to remove a partially created team project is to run:

tfsdeleteproject /force /server:http://tfs-server:8080 Project1

There are three ways to manually delete a WSS site:

• Browse to http://tfs-server/sites/Project1, choose Site Actions | Site Settings | Delete this sit
• Browse directly to http://tfs-server/sites/project1/_layouts/deleteweb.aspx
• Use stsadm.exe -o deleteweb -url http://tfs-server/sites/Project1 (See TechNet for more information)

Hope this helps!