Microsoft announced the release of Visual Studio TFS Project Server 2007 Connector. This release is long awaited by the TFS community since it allows integration between the developer IDE and MS Project Server. Out of the box TFS allows only integrating with Microsoft Office Project 2007, which is the client tool for Microsoft Project Server.
I am planning to give it a try in the next weeks and will let you know if it is working for me.
From the TFS Connector site:
The Connector synchronizes Project, Resource and Task data between the two systems. Project Managers and Resource Managers continue to work in the EPM environment while the development team works in the development environment, i.e. TFS, and data seamlessly flows between the two systems. Updates to work items in TFS are automatically applied to the corresponding assignments and tasks in Project Server and vice versa. Project Managers have complete control over the inflow of the actuals into the project plan. In addition, resource management functions for all development projects, like managing time and utilization for resources working across multiple projects, team staffing etc. can be performed in Project Server. Lastly, portfolio and program level reports can easily be generated for projects being executed in TFS and managed in Project Server.