Dear SME:
I’ve heard great things about SQL Server 2008 Reporting Services, and would love to use SQL Server 2008 as the backend for my Team Foundation Server. Is that possible? What are the implications?
Quizzical about SQL

Dear Quizzical,
SQL Server 2008 has many compelling features, and many companies are already using it for their Team System implementations. But there are some restrictions. First, only Team Foundation Server 2008 SP1 supports SQL Server 2008, so if you’re still on Team Foundation Server 2005 you’ll need to upgrade. Next, if you’re doing a fresh install, you’ll need to slipstream SP1 onto the TFS 2008 installation media. If you’re working with an existing TFS implementation, on the other hand, you’ll need to install SP1 prior to upgrading your SQL Server. Finally, you’ll need to consider licensing. A copy of SQL Server 2005 Standard Edition is included in your TFS 2005 and TFS 2008 license. However, a copy of SQL Server 2008 is not. That means you’ll need to own a licensed, production copy of SQL Server 2008 to use for TFS. (It can, of course, be used for other applications, as well.)
Once you’re on SQL Server 2008, you can begin to enjoy the improvements in Reporting Services, as well as the new business intelligence features of Analysis Services. Enjoy!
Signed,
Mr. SME