A freshly installed TFS 2010 is at http://serverX:8080/tfs.
A Windows 7 developer machine with VS 2008 Pro SP1 and the VS2008 Team Explorer (no
Check out this article 'Connecting VS2008 to any TFS2010 Project Collection'.
The only catch here is that the author didn't mention that you need to install/reinstall Service Pack 1 'Microsoft Visual Studio 2008 Service Pack 1 (Installer)' for Visual Studio 2008 after installing Team Explorer 2008. This will take care of the invalid characters error message when trying to connect.