Well, if you haven't heard yet we have a connector available that is, in my opinion, absolutely a necessity in the enterprise world for development.  Check out the overview blurb below:

 

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We are pleased to announce the release of Visual Studio Team Foundation Server - Project Server 2007 Connector which is available at http://www.codeplex.com/pstfsconnector.

OVERVIEW

The Visual Studio Team Foundation Server - Project Server 2007 Connector is designed to integrate the project management capabilities of TFS with Project Server 2007. It's been developed by the Visual Studio Team System Rangers in response to significant customer demand for a connector solution. Future versions of Team System will have native integration with Project Server, in the meantime this Connector solution is the best way to integrate the two Microsoft products. This solution builds on the previous PS2003 VSTS Connector, published on GotDotNet. This solution is intended to provide guidance, provided as source code that can be used "as is," extended, or modified.

 

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enjoy!