If you move their IIS root directory from inetpub to a different folder without copying the AdminScripts subfolder from inetpub to the new directory, WSS setup fails silently. The WSS admin site is not setup yet you won't notice it until you try to get to it.
If you try to install TFS after this you will recieve an error during TFS install: "Error 32000.The Commandline '"D:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\60\Bin\Stsadm.exe" ...' returned non-zero value: -2130242250."
This is due to the fact that WSS is not installed properly and the admin site is not accessible.
If you recieve this error, here are the workaround steps:
2-Copy over AdminScripts from InetPub folder to the new VRoot folder
3- reinstall WSS
4- rerun TFS setup.