Create Team Project Log File
TF30263: Error creating document library Security Exception = Microsoft.TeamFoundation.TeamFoundationServerUnauthorizedException: TF30063: You are not authorized to access TFSSERVER.
Event Description: TF30162: Task "SharePointPortal" from Group "Portal" failed
Exception Type: Microsoft.TeamFoundation.Client.PcwException
Exception Message: Your account does not have appropriate permissions in Windows SharePoint Services to create a team project site.
Exception Details: Your account does not have appropriate permissions on the following server: TFSSERVER.
Your account must be a member of the SharePoint Central Administration security group in Windows SharePoint Services to create team project sites.
Event log fired on clean up from failed Team Project creation
'$/PROJECT' and everything beneath it has been destroyed.
Process Name: w3wp
Process Id: XXXX
Thread Id: XXXXX
Account name: DOMAIN\USER
'System Service Identity' performed a destroy of '/$PROJECT' and everything beneath it.
On this install I had this TFS 2008 and SharePoint Services 3.0. Instead of doing solution below I went head and used the link I bottom of the post for permissions for another user and used Visual Studio 2008 and Team Explorer 2008 to create the team project from a remote PC not over Remote Desktop or Terminal Services.
KB954315 on this issue talks about SharePoint Services 2.0
Run this command to check and reset the NTAuthenticationProviders metabase property to NTLM only if necessary.
To perform these procedures, you must be a member of the Administrators security group on the server that hosts Windows SharePoint Services 2.0.
To reset the NTAuthenticationProviders metabase property to NTLM Open Start, click Run, type cmd, and then press ENTER.
Locate the directory that contains the adsutil.vbs file.
The default location of this directory is Drive:\Inetpub\Adminscripts.
Use the following command to retrieve the current values for the NTAuthenticationProviders metabase property:
cscript adsutil.vbs get w3svc/WebSite/root/NTAuthenticationProviders
In this command, WebSite is a placeholder for the Web site ID number. The Web site ID number of the default Web site is 1.
Do not perform a copy-and-paste operation to paste the above at the command prompt. This operation may cause problems with the property setting. To avoid problems, type the whole command (including the spaces) at a command prompt.
This command fails if the NTAuthenticationProviders metabase property is not defined. By default, the NTAuthenticationProviders metabase property is not defined when you install IIS 6.0. IIS 6.0 uses the Negotiate, NTLM parameter when the NTAuthenticationProviders metabase property is not defined. Therefore, you do not have to configure IIS to use the Negotiate,NTLM property value unless the default value has been overwritten.
If Kerberos authentication and NTML are both enabled, this command will return the following:
NTAuthenticationProviders : (STRING) "Negotiate,NTLM"
If the command in step 3 does not return the string "NTLM" only, use the following command to disable the Negotiate process:
cscript adsutil.vbs set w3svc/WebSite/root/NTAuthenticationProviders "NTLM"
Repeat step 3 to verify that the Negotiate process has been removed.
NOTE, the website in above command are place holder, You could find out your sharepoint central admin web site ID in IIS manager, for example, if the web site ID is 2.
The command syntax to check setting would be:
cscript adsutil.vbs get w3svc/2/root/NTAuthenticationProviders
To set, run:
cscript adsutil.vbs set w3svc/2/root/NTAuthenticationProviders "NTLM"
Other links might be help you for issues based on permissions.
Setting Permissions for TFS