This morning we had another TFS Error. I guess, I can write a book called "Team System Errors and Solutions" :).The Error occured during the creation of New Project
The Project Creation Wizard was not able to connect to the Windows SharePoint Services at [Server-Name]
The error is mainly because the sharepoint admin services (Sharepoint Central Administration Site) is no more working.So to remove the error I took following steps on the server
1. Goto IIS2. Click Application Pools3. Right Click -> Sharepoint Administration Site V3 (It is the application pool which is in used by Admin site)4. Click Properties5. Identity Tab and make sure the user which is in use by Application Pool is a valid TFS Service Acccount. If it is then re-enter user id and password
and it will work.