The SQL Error 468 might happen when you upgrade Team Foundation Server 2005 to 2008. It has to do with the collation on SQL Server. SQL_Latin_General_CP1_C1_AS is the default SQL Server collation. I checked the old TFS 2008 upgrade SQL Server, that had LATIN1_General_C1_AS. I had been currently running SQL Server 2005 SP2. I don't recommend changing these collation by yourself. This is a known issue and the hotfix is assigned to the KB article 948064. This article is not publicly available yet. Until then I would call Microsoft if you have support contract with them. For this case the hotfix did work for this issue. I can't guarantee that it will fix every scenarios.
Resolve Version Conflict error
Adding new items to source control.