It was a shiny morning (I think it was Sunday, the one before the last one), we tried to create a new project after we finished the installation. yes, it was the beta 3, and we actually installed this on our machines, we spent the whole day (Sunday) trying to figure out what we did wrong, the symptoms: After the installation finished we could not see the project site! no error had occurred!

we were really disappointed to start all over again. we even re-install windows again with no luck.

I read some dudes writing about installation of the release instead of the beta 3, so I talked to Eliaz to send me the disk, we actually got it last Sunday, starting enthusiastic to install it, of course that we start everything from scratch. we didn't make it, again!

so we start Google it up, using almost every log file in our server, and checking almost every error, we found out some great points and I'll share them with you:

1. We Made the beta 3 installation step by step, almost by the book, except for one little step: we didn't give SMTP server (Security master didn't let us). I am not sure but I think that the beta 3 must install the alert using SMTP, if we had one on the specified server it might solve the beta 3 problem.
2. It turns out that the disks we installed (Microsoft sent us) were beta (all of them)
   how to recognize the real TFS version? there are many ways (if you are shouting: written on the disk! you wrong, it isn't one of them), I'll post some of them:
   * The release version disk includes two directories that are not exists in the beta 3.
      (SQLServerKB, KB913393)
   * While installing the beta 3, in the TFS installation, you will get to a screen asking about the
      service and reports users, they both won't validate the password, while in the release
      version it will check validity of password, for example: try to put a space in the password,
      the release will show a message alerting that you cannot use space in your password...
   * If you won't install those KBs above (from the new two directories), the release version
      will alert you in the "system health check" step at the TFS installation,
      while the beta 3, will not check those dependencies (while they are actually a must)
   * After installing the TFS:
      1) Go to your IE click: http://YourServerName/ you should view a page under construction.
      2) Go to http://localhost:8080/services/v1.0/registration.asmx you will get a service, invoke
          it using an empty string.
      If they are, both, working you are in the right direction.
      BTW, for getting the real TFS Version you can, simply, download it from:
      Microsoft Download center - VSTFS Trial Edition
3. I recommend to install the TFS using Tim Erickson's post, he actually wrote every click in the installation process.
4. After reading step-3, I must add that Tim didn't mention the fact that you must install the SQLServerKB after the SQL Server installation step.
   If you didn't do this you will get an error while trying to install this hot-fix, something about a shared files that cannot be moved.
   All you have to do is:
   Start -> Control Panel -> Administrative tools -> services -> and stop the SQL Server Browser process. and continue the hot-fix installation.
5. In our place the passwords must include space (Yes, the Security master, again) so as I said I've got a validation error in the TFS installation phase, I make a simple workaround:
   define two new local users (YourMachine\local_TFSService & YourMachine\local_TFSReports) with your own simple passwords and continue the installation.
   It works perfect for me, but I read that local users will cause problems on connecting your server from other (remote Pc). I didn't check this yet, I worked on the same machine for now.
   I'll let you know:
   1) If it's true and what the problems.
   2) How to change the users after the installation (without removing everything).
      (after all I almost sure that those users saved in one of the TFS services)  

I know that it sounds scary, and I always read about people trying to solve different bugs, and strange unclear comments but it is worth it and with the release version it is also fun and simple.

Thanks to Elad & Yoav for all the nights we spent together helping each other to solve strange problems during this operation.