Team Services Foundation Server (TFS) Beta 2 depends upon AD/AM (Active Directory / Application Mode). According to the documentation, ADAM runs on domain controllers running operating systems in the Microsoft Windows Server 2003 family (it also apparently runs on Windows 2000; however, I have no personal experience with that configuration). Because Microsoft Windows Server 2003 Web Edition cannot be a domain controller, Team Foundation Server cannot run on Windows 2003 Web Edition. I had to find this out the hard way as the installer does not check for this particular pre-requisite. The error message that ADAM gives you very late in the TSF installation is that the “product cannot be installed on this version of Windows” (it isn't more specific than that). It takes a little bit of digging and some well placed educated guesses to find out why. According to some newsgroup posters, it is possible that the dependency upon ADAM may not be present in a future TFS releases.