Yes, R2 is supported.

I've seen a few people asking whether or not Windows Server 2003 R2 is a supported operating system for installing Visual Studio 2005 Team Foundation Server. According to the Team System product team R2 is in fact a supported platform.

Remember to check out the latest versions of the Visual Studio Team Foundation Server Installation Guide as well as the Administrator's Guide.

For people who saw "R2" and thought this might be a post about Star Wars, sorry about that. Today I'm blogging about software development. You might be more interested in Death Star development.