Many customers have WSS3.0 farms in house and they want to use these farms with TFS. In TFS 2005 you had to use WSS2.0 on TFS machine and you could not leverage the existing farms in the company. With TFS 2008 or Orcas you can use existing WSS3.0 farm. This is well known fact now but I have received many questions about upgrading the TFS 2005 with WSS2.0 environment to TFS 2008 with existing Share Point Farm. Following are detailed steps to achieve this

Detailed instructions

• Upgrade TFS:  Run Orcas Installer to upgrade the VS 2005 TFS server to Orcas Beta2.  Please follow the instructions in the latest installation guide (or in the document I sent you previously). At end of this process you should have Orcas server with WSS2.0 configured.
  • Please do a quick sanity check to make sure everything is working normally.
• In-place upgrade of WSS2.0:  Next follow the instructions in http://technet2.microsoft.com/windowsserver/WSS/en/library/91046a84-57a1-40cb-a32c-ff3395073dc91033.mspx?mfr=true, paying attention to the topics on Plan and Prepare for Upgrade, Perform Pre-Upgrade steps and Perform and in-place upgrade

1. Run WSS prescan.exe tool to verify if you can upgrade WSS from 2.0 to 3.0
2. Run WSS3.0 Installer and select the upgrade option
3. The installer will ask you for new Administration Port. You cannot use the old port(17012). You need to select new port number.
4. Complete all the installation and upgrade steps for WSS3.0
5. Now you should have Orcas server with WSS3.0

• Migrate team sites:  Migrate your TFS team project sites by exporting your existing team project site collections from the Sharepoint 3.0 server on the application tier, and importing into your remote WSS3.0 farm
  • Follow the instruction in http://technet2.microsoft.com/windowsserver/WSS/en/library/91046a84-57a1-40cb-a32c-ff3395073dc91033.mspx?mfr=true, following the topic on Migrate content by using import/export
  • At this point you should have team project sites created and visible on the remote Sharepoint 2007 farm.
• Update Sharepoint 2007 farm:  Next you'll need to update the remote Sharepoint farm to allow new team sites to be created as part of project creation (new TFS site templates) and the Reporting redirector for the reporting web part.
  •  On the remote Sharepoint 2007 farm, install the Sharepoint extensions for TFS
  • Run Share Point Extensions for TFS setup. This should be located at InstallMedia\WssExt directory. This will upload the new site templates for WSS3.0.
• Link Orcas TFS and remote WSS3.0 farm:  Now you have Orcas TFS and Remote WSS3.0 setup. But you still have to link them up to work together.
  • You can do this by using TFSAdminUtil command on the application tier machine,  where you need to replace <wssserver> with the name of you server farm (or it's virtual name). Here is  the command to perform this task.
    • TFSAdminUtil configureconnections /SharepointURI:http://<wssserver>:80  /SharepointSitesUri:http://<wssserver>:80/sites /SharepointAdminUri:http://<wssserver>:adminport /SharepointUnc:\\<wssserver>\sites
    • Please do a sanity check to make sure everything is working properly.  You should be able to go to a team project in Team Explorer, right-click on the project node and select "Show project portal", and this should take you to the correct team site on the remote Sharepoint 2007 farm

I hope this is helpful. Please let me know if you have any questions or concerns