A few months ago we released an update to the Team System for Database Edition product that enabled it to work seamlessly with SQLServer 2008.  Since then we’ve gotten some reports from customers about compatibility issues and things that didn’t work quite right.  We are preparing to release the next update that will address all of those issues.  You can read in detail about the fixes that are coming and how to download the patch here: http://blogs.msdn.com/gertd/archive/2009/03/26/release-candidate-of-gdr-qfe.aspx

Brian