It’s quite irritating to setup VS Team System, a simpler option is to download the pre-configured VPC from MSDN. You need to be a subscriber. It simplifies things tremendously, the downside obviously is the volume of data which you need to download. Which is about an overnight download if you have a 512Kbps pipe.
The other alternative is to go thru the setup manually, and theres a detailed installation guide to help you thru setting up Team Foundation server http://go.microsoft.com/fwlink/?LinkId=40042