<p>What are the best practices in setting up a new instance of TFS 2008 Workgroup edition?  </p>

<p>Specifically, the constraints are as follows:</p>

<ul>
<li>Must install on an existing Windows Server 2008 64 bit</li>
<li>TFS application layer is 32 bit only</li>
</ul>

<p>Should I install SQL Server 2008, Sharepoint and the app layer in a virtual instance of Windows Server 2008 or 2003(I am already running Hyper-V) or split the layers with a database on the host OS and the app layer in a virtual machine?</p>

<p>Edit: Apparently, splitting the layers is <a href="http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=3501572&amp;SiteID=1" rel="nofollow noreferrer">not</a> recommended  </p>

I just upgraded our team to TFS 2008, from TFS 2005. The hardest part was upgrading SharePoint 2.0 to 3.0, so I would make sure to do that first, if you have not already installed TFS 2008. We had a couple of other difficulties, but they were all either related to the SharePoint upgrade, or to the fact that we were using an aftermarket Policy package - Scrum for TeamSystem. We are on SQL Server 2005, so I cannot address SQL Server 2008. As for  splitting the layers, we did not do this either, as we are running on                          Windows Server 2003 and everything ran under the host OS.