Armed with the knowledge that TFS should be OK if you install SQL Server 2005 SP1 on the TFS server, I went ahead and installed SQL Server 2005 SP1 for a new installation of TFS I did over the weekend. Following Rob‘s TFS Installation guide, I simply applied the server pack immediately following the installation of SQL Server and I skipped the step where you would normally install the SQL Server HotFix as it is part of the service pack.

The installation went smoothly and the System Health Check was fine [:)]