With today's release of VS 2008 SP1 (including Team Foundation Server 2008 SP1), we've updated the Installation and Administration guides for TFS. If you are planning to deploy TFS SP1, please download and review these versions of the guides before proceeding. If you have any questions or encounter any problems setting up TFS SP1, please post in the TFS Setup Forum on MSDN.
Note, the service pack for Team Foundation Server is a separate download from the service pack for Visual Studio/Team Explorer. You can find the server patch here and the Team Explorer patch here. Also note that if you have Team Explorer installed on your Application Tier, you'll need to install both the client and server patches. A typical scenario where you might encounter this is if you have Team System Web Access installed on the Application Tier. TSWA uses the TFS client object model which is installed along with Team Explorer. It should not matter in which order you install the patches.