Some users report an issue in Visual Studio Team System (VSTS) 2008 – Development Edition. In the Development Edition, they failed to upgrade VSTS 2005 Test Projects. We have verified this is a product defect only in VSTS Development Edition and Visual Studio Professional Edition. We understand the impact of this issue, we are working to produce an update to resolve it. In the meantime, if you are looking for a workaround, please look at this article that we posted to our MSDN forum: http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=2534717&SiteID=1
We encourage you visit our forum often – ask questions and give us feedback, we will make our product better.
Visual Studio Team System Test