Rob tells us that the Basic Authentication scenario will not be supported in V1 here.
This scenario is very important to a lot of small/medium business with consultant on the road a lot. But fear not, there are ways around this problem.
1. Use IA it works for most scenario, where I've seen issues is when leaving corporate environment that are protected by firewall (like everyone!). But if you are connecting from home (for example) even behind personal router it works fine.
2. Look at teamplain, a web based scenario that might work to get work item info using basic auth at least (you are still stuck for TFSSC).
3. Use VPN that also works great. I know that a lot of folks are working at customer sites that don't allow VPN out to their own company so that is also another issue. But if you can use VPN than that work great.
Also Rob tells us “We are continuing to work on adding this support in the near future, which should be available sometime soon after the release of Team Foundation ” So this is great news, the scenario hasn't been dropped it's just going to be shipped out of ban, and before V2 fiouuuu.