I'm sure I missed a step somewhere during setup but...so the search engines catch 'em, I'm going to post my TFS/VSTS 2010 setup missteps below:
Issue: "TF255147: The following server that is running SQL Server is not listening on the expected TCP port: SERVER"
Resolution: Open SQL Server Configuration Manager. Under SQL Server Network Configuration, Protocols for MSSQLSERVER, right-mouse Enable TCP/IP. Restart SQL Server. Re-run TFS configuration wizard.
Issue: "TF255282: Windows SharePoint Services 3.0 cannot be installed. The program is already installed on this server"
Resolution: Open up Add/Remove Programs (or "Programs and Features" under Win2k8 Server) and remove Microsoft Windows SharePoint Services 3.0. Re-run TFS configuration wizard.
Issue: Couldn't get Full-Text search within SQL 2008 to install.
MSI (s) (14:AC) [00:03:21:091]: Source is incorrect. Unable to open or validate MSI package D:\Setup\sql_engine_core_shared.msi.MSI (s) (14:AC) [00:03:21:093]: Note: 1: 2203 2: D:\Setup\sql_engine_core_shared.msi 3: -2147287037 MSI (s) (14:AC) [00:03:21:093]: Source is incorrect. Unable to open or validate MSI package D:\Setup\sql_engine_core_shared.msi.Please insert the disk: Please insert next disk
Resolution: I'm installing on a VPC so I simiply download ISO installs, "Capture ISO image..." from the CD menu of the VPC and install. Works great...usually. In this case, for some reason, the installation would get 2/3rds to completion and die with very innocuous errors. I kept coming up empty searching for "error" within the 500k MSI log file. Finally stumbled onto something referring to "Unable to open..." having something to do with subst.exe and network or simulated mapped drives. I expanded the ISO with MagicISO, copied it to the VPC hard drive and wala, no more issue. That was a good 6 hours of struggle.