I am installing VSTS. What components do i need to install for both .net & sql server. ? How do we configure our projects?
There are two parts to a successful Team System environment: Team Foundation Server and Visual Studio Team System.
For best results, install the former on a dedicated server. There are great resources to help you through installation right from Microsoft. There's even a video series of TFS-related content!
Once your Team Foundation Server (TFS) is installed, Visual Studio Team System (VSTS) is installed on your development workstation. VSTS looks just like any other VS install at startup. To configure it to work with your TFS instance, go into Tools > Options and Select Source Control: here you will see a pull down which should contain an entry entitled Visual Studio Team Foundation Server. I forget how to select your TFS server instance for VSTS to work with but I don't recall having trouble with it when I did it a few months ago.
Once you've configured all that, you interact with your TFS work items and source code from the Team Explorer and Source Control Explorer panes in VSTS: it should begin to feel rather like using VS without integrated source control from there forward.
The bigger issue is configuring your process in TFS to reflect your project's strategy, etc. That is an exercise in thought/reading more-so than how to configure it.
All this documentation is readily available via Microsoft's website. It does require some reading but devote some time to it: it'll pay off in the long run.