One of the most highly requested project management features of Team Foundation Server is deep integration with Microsoft Project Server. This would allow project managers to apply enterprise project management (EPM) capabilities within Team System.
Unfortunately, Team Foundation Server (version 1.0) does not have any Project Server integration points built in. However, you can use the project plan (.mpp) as the intermediary between both servers to create a loose integration between both products.
There are other solutions available from third-party providers:
Avanade (avanade.com) is working on a Software Lifecycle Process (SLP) that will provide support for industrialized project management capabilities within Team System. The SLP solution will include a solution for integrating Team Foundation Server with Microsoft Project Server. You can learn more on the following Web site: http://msdn.microsoft.com/vstudio/why/avanade/default.aspx.
There is a GotDotNet (gotdotnet.com) project called the Project Server-Visual Studio Team System Connector. It provides some tools for more tightly integrating both products together using the Project Creation Wizard and a COM add-in for Microsoft Project. At the time of writing, the connector is available for Team Foundation Server Beta 3 only. However, there are plans for updating the product for the RTM version of Team Foundation Server. To obtain the connector, visit the following link: gotdotnet.com/Workspaces/Workspace.aspx?id=.