It all begins with the Team Project
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.