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
2009-03-30 23:24:38