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You need to add the Log on as Service right to the TfsService account when installing Team Foundation Server (TFS) 2008.  (And for that matter, TFS 2005.)  So, how do you do that?  If you’re not an IT Admin type, it can be difficult to find.  The best practice is to have the IT folks do this for you, but if you ARE the IT ‘folk’, here it is:

  1. From the TFS Application tier box, go to Start -> Administrative Tools -> Local Security Policy
  2. Click on the Security Settings -> Local Policies -> User Rights Assignment node
  3. Right-click the Log on as service right and select Properties
  4. Click the Add User or Group button
  5. Add the TfsService account

It should look something like this when you’re done.

Log on as service

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