When using Visual Studio 2008 and Team Explorer to connect to a TFS 2008 server to create a new Team Project, one might encounter the following error,
TF03177: Team Project Creation Failed
Error
TF30004: The New Team Project Wizard encountered an unexpected error while initializing the Microsoft.ProjectCreationWizard.Reporting plug-in.
Explanation
TF30171: The Microsoft.ProjectCreationWizard.Reporting plug-in used to create the new team project could not be initialized and returned the following error: TF30224: Failed to retrieve projects from the report server. Please check that the SQL Server Reporting Services Web and Windows services are running and you have sufficient privileges for creating a project..
User Action
Contact your Team Foundation Server administrator.
This is likely due to the sequence of installation of updates to Visual Studio, when SP1 was applied before installing Team Explorer. Team Explorer installer appears to undo certain elements in SP1 that would cause it to fail. SP1 must be reinstalled to fix those areas.
http://www.thejoyofcode.com/TF03177_Team_Project_Creation_Failed.aspx