We have tracked down a problem during the installation of the middle-tier that impacts the ability to install AD/AM correctly, which is installed by Team Foundation Server setup. The issue is that under certain configurations, path names are resolved to long filenames, which in this particular case resolves to a path with spaces in it. The space is causing the command to fail when installing AD/AM.
The user will notice several attempts to install AD/AM ultimately leading to a failed installation of the Team Foundation Server application tier. Reviewing the AD/AM installation log in %systemdrive%\windows\debug will indicate that the Answer File could not be located.
Install AD/AM manually prior to installing the Team Foundation Server application tier. We use defaults for most settings, with the following exceptions:
Applicability: Visual Studio 2005 Team Foundation Server, Beta 2