I've spent a week trying to get TFS 2008 installed on my home infrastructure. It was the most painful piece of software that I've ever installed. And it looks like I was not the only one who felt that:
"Installing TFS has been a pain point for years. Although it’s gotten better, 2010 represents a quantum leap. The TFS installer now has 3 wizards: Basic, Standard and Advanced. The big innovation is the new “Basic” install wizard. It is a Next, Next, Next install experience that allows you to install and configure TFS in about 20 minutes or less (assuming .NET and SQL Express are already on your computer – a little longer if TFS has to install them for you). Both will already be there if you’ve installed VS 2010. The Basic wizard will install and configure IIS (if it’s not already there), install and configure SQL Express (if it’s not already there), and install and configure TFS. The only thing that really pains me is installing .NET 4.0 requires a reboot :(."