+5  A: 

I ran into this a while back and found my solution here. The solution is described by "Fern82" near the bottom of the thread.

What you need to do is delete the following directory:

C:\Documents and Settings\<Current User>\Local Settings\Application Data\Microsoft\Team Foundation\1.0

Next run the following statement in a Visual Studio Command Prompt:

devenv /resetuserdata
Jeremy Wiebe
that seems to do the trick. Thx!
MichaelD
it also fixed a bunch of other problems and increased visual studio performance a lot. thx again!
MichaelD
A: 

Search the following link for complete solution:

Issue: Red cross on reports folder and New TFS Team project creation error: TF30004, TF30171, TF300224

http://social.msdn.microsoft.com/Forums/en-US/tfsadmin/thread/27eca9a3-39e1-45ce-8f3c-8af8ede006c6

Arun Sangal

Arun Sangal