Screen Gallery: Upgrading WSS 2.0 to WSS 3.0
You updated to TFS 2008, but since the upgrade process doesn't touch your already installed WSS you are responsible for upgrading it yourself.
Official Guidance:
Step 1: Run Prescan.EXE
Resulting log file:

Resulting XML file:
Step 2: Install WSS 3.0

Step 3a: Upgrade (invoked automatically by setup)



(Be aware: if you do not use the same port as your TFS is configured to talk to today you need to change the TFS registration using TFSAdminUtil afterwards!)



Step 3b: Still Upgrade (not in the web browser)
Step 4: Finalization (manual step)

Step 5: Uninstall WSS 2.0 (manual step)



Step 6: Install & configure TFS Extensions for WSS (located on the TFS media)



Step 7: Verify success by creating a new team project
