Full error message: “TF252031: A SharePoint site could not be created for the team project collection. The following error occurred: Server was unable to process request. ---> Exception from HRESULT: 0x80040E09”
We have found that this error happens when you are creating a team project collection, mostly commonly here:
This error only occurs when Team Foundation Server, SharePoint Products, and SQL Server are all installed on the same machine and SQL Server has the TCP/IP protocol disabled.
The Trial and Developer editions of SQL Server will have TCP/IP disabled by default. We’ve seen customers running into this problem with customers trying to evaluate Team Foundation Server by using Trial/Developer editions of SQL Server.
The workaround is to simply enable the TCP/IP protocol for SQL Server.
NOTE: For more information on setting this, you can refer to the “How to: Verify SQL Server 2008” section of the Team Foundation Installation Guide.
Once this is complete, then you can create a team project collection using the Team Foundation Administration Console. The SharePoint site collection should be successfully created and you will have a fully operational system.
If you already have a team project collection with no SharePoint site created, then using the Team Foundation Administration Console, select that team project collection, and from the “SharePoint Products” tab, select to edit the default path. It will automatically prompt you to create a SharePoint site.