This is one I worked on for a while. The biggest impediment I had was getting the permissions straightened out. Thanks to the help of my team we eventually figured it out.
I won't go into details here about how to use Reporting Services or how to make a report pretty. Instead, I'll give a quick overview of how to pull existing projects from TFS (or, more specifically, its Reporting Service Engine).
As mentioned, TFS uses SQL Reporting Services for its reports. So all you need is to navigate your web browser to:
http://yourTFSserver/Reports_TFS
If you are lucky enough to have the Content Manager Site role for the whole server, you might see something.
If you only have permissions to a specific TFS project then you better go to your project:
http://yourTFSServer/Reports_TFS/Pages/Folder.aspx?ItemPath=%2f<YOURPROJECT>&ViewMode=List
Then you should see all the Reports available to you. Usually you have enough permission to run them. But if you click on Show Details (in the upper right corner) and then click on edit, or if you try to click on the property tab, you are usually out of luck as a user. You will get an error telling you "Insufficient Permission".... That was my life for a while.
So I was granted the Content Manager role of the specific project but this still did not fix the problem. I was able to upload and run new reports, but not to edit any of them (even the one I created...). Then I was given the admin role for this project and then the site admin role...but still no success.
To make a long story short. You need Content Manager role permission for the whole site to be able to edit a report in a specific project. Content Manager permission for a specific project is not enough. Also Administrator permissions are not enough (which was surprising to me).
Once you know that, then you're dealing with straightforward SQL Report Services. There is good docu out there so I better stop here. Hey it is Friday and my little one is waiting for me at home :-)
I hope this will save you some time and headache.
Tom
P.S.: Thank you Pinal for your help on this one!