We've seen some questions related to upgrading Windows Sharepoint Services 2.0 (WSS2.0) to version 3.0 on the TFS application tier in the forums lately, so I want to try to make sure everyone understands the implications of doing that.

In version 1, this is not supported.  If you happen to upgrade your WSS2.0 to WSS3.0, you can expect the following behavior:

• The Team Explorer's 'Documents' node will have a red x on it and will not expand. 
• Team Project Creation Wizard will fail with the standard templates, only templates with all WSS functionality removed will work. 
• You will not be able to browse to the site by right-clicking on the project and selecting 'Open Project Portal'. 

In other words, all of our integration will fail with WSS 3.0 on a v1.0 client machine (TFS server doesn't really matter, it's all client side integration).

Note:  The upcoming service pack for TFS will not add support for WSS 3.0.  We are investigating options for supporting WSS3.0 and beyond in future releases of TFS.