With the announcement that the first service pack (SP1) for both Windows Sharepoint Services 3.0 and Microsoft Office Sharepoint Server (MOSS) 2007 only a couple of days old, I have already been asked twice if this service pack can be applied to WSS 3.0/MOSS2007 installations used by TFS.
The good news is that it has been tested and there appears to be no issues from a TFS perspective. Obviously, you should always have a full, *tested* backup of your TFS server before applying any service packs and this is no exception.
Windows SharePoint Services 3.0 Service Pack 1 (SP1) (32bit & 64bit)
NOTE – Windows SharePoint Services 3.0 SP1 must be installed before the 2007 Microsoft Office Servers Service Pack 1 is installed.
For links to each of the downloads (including slipstream versions) and for more information about the contents of the service pack, visit the Sharepoint blog

RE: TFS2008 with WSS 3.0 SP1 & MOSS 2007 SP1?
Mickey Gousset on Go check out my first article at codeproject.com. Brian Harry on A new community project…
Have you tried to create a new Team Project after you have WSS3.0 SP1 installed? I get allways the same error, when i am trying this:
TF30177: Team Project Creation failed
Eror
The Project Creation Wizard encountered an error while uploading documents to the Windows SharePoint Services server on ‘mytfsserver’
Have you any Idea?
Thanks