Hats off to Rob Conery and his persistence in perfecting the recipe for deploying Web applications from Team Foundation Build. Rob contacted me last week seeking help with this. I pointed him to some resources I knew (VSTS RTM:Recommended options for Web Applications to gel with TFS Build and TN_1601: Team Build and Web Deployment Projects), but it took some additional tinkering to get it working for his scenario. You can find the recipe on his blog as Team Build, Web Applications, Lemon Juice and Paper Cuts.
Yes, I know, I've seen the groovy demos where "All you have to do is add a WebDeployment Project"; that's OK if you have a silly sample site. I have been working on a real-world site for a client with multiple class-file projects, web services, etc and, well let's just say Team Build took a LONG time to figure out.