Project created within the Visual Studio 2005 Team System are called Team projects. The Team project is the thing that holds the entire process together. The creation of a Team project initializes a variety of configuration items across the Team System. Based on the installed process template, this includes the creation of document templates, a source code branch, predefined reports and a Windows SharePoint Services project portal. Within SQL Server 2005 a work item database is created for tracking project efforts.
In this short video located here, I show how to create a 2005 Team System project.