I'm jumping at the bit to start incorporating TFS features into my development practices to try and encourage others to use it too. One big draw back to the whole TFS .Net 2.0 platform is backwards compatibility with .Net 1.1 framework which you can't compile to in Visual Studio 2005 - a mistake i think Microsoft will regret as this will be the major hold-back for upgrading to the VS2005 platform and therefore TFS.
Fortunately for Microsoft there is a company creating plug-ins to IDEs other than VS2005 such as Eclipse and VS2003. TeamPlain VS2003 plugin should be available shortly and will allow current users of VS2003 and therefore .Net 1.1 projects access to TFS.
I still can't understand why Microsoft didn't choose to allow VS2005 IDE to handle .Net 1.1 code, they must have realised that not everyone can just jump on the .Net 2.0 band wagon. Maybe they are arrogant enough to think that developers have enough power to push management into making decisions to spend money to upgrade to .Net 2.0 just to get a new IDE and platform to make developers lifes happier.
<UPDATE>
Found an blog from Andrew Coates who was here over in Perth for the DotNetRocks seminars back in November...he mentions a bit more about a way of using TFS without this plug-in so it seems.