Windows SharePoint Services is an integral part of Team Foundation Server. As a result, there is very tight integration between two of them. This integration provides TFS with several important tools used by development team. The most important is called Project Portal. This portal allows for better communication within team members who can use portal to store project documents, process templates, reports and other project related artifacts.
In addition to Project Portal, WSS provides with webs publishing tools which help share documents among team members. Windows SharePoint Services reporting is another useful tool widely utilized within TFS.
WSS is very flexible in many ways and this flexibility it very useful when integrating TFS with WSS. For instance, flexibility to create and manage our own lists of documents allows us set up process templates for various project types such as Agile or CMMI.
User account synchronization is another integration aspect that we may consider. We can synchronize Team Foundation users with Windows SharePoint Services users. This integration has to be continues since user information can be updated daily.
Integration between TFS and WSS happens on the Application Tier hardware that runs our Team Foundation Server.
Here is a screen shot of Windows SharePoint Server based Project Portal which looks like any ordinary WSS site.