One of the prerequisites for TFS 2008 is that it must be installed to work with SQL Server 2005 SP2 or SQL Server 2008. However, TFS 2008, by itself, will not work with SQL Server 2008. You’ll receive an error message that your SQL Server instance is
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Read the complete post at http://feeds.feedburner.com/~r/JasonNGaylord/~3/402066304/installing-team-foundation-server-2008-on-sql-server-2008.aspx