TF30207: Can’t create team project on TFS itself / red X on documents and reports / insufficient SSRS or WSS permissions

Problem description

Team Project creation fails on the Team Foundation Server itself due to insufficient permissions although the user has all neccessary permissions in SQL Server Reporting Services (Content Manager role) as well as Windows SharePoint Services.

or

A red X is shown next to the Reports and Documents node when running Team Explorer on the Team Foundation Server itself.

Further obervations:

    • You can access http://<server>/reports without problems.
    • You can access the SharePoint Central Administration without problems.
    • Creating team projects with Team Explorer from other machines work fine.

Workaround

Follow the steps outlined in the following KB article:  http://support.microsoft.com/kb/896861