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Microsoft Fail
This post is titled Microsoft Fail rather than "TFS 500 Server Error" because it is just that pathetic.

Issue:
Installed TFS 2010 on a perfectly functional Windows 2008R2 Server.

.NET 4.0, VS 2010, and SQL 2008 were preinstalled.

Selected "Basic" installation.

What happened was TFS installed fine, but any time you tried to open the website or connect from visual studio, you got a 500 Server Error. In the event log was this message:

Could not load all ISAPI filters for site 'TEAM FOUNDATION SERVER'. Therefore site startup aborted.

Clicking "Group Membership" in TFS Console gave a similar error. Connecting from Visual Studio gave a 310003 connection unavailable error.

Solution:
It turns out that Microsoft screwed up the installation file for TFS. If you open IIS settings, and click on your computer name (root node), you will see an Isapi Filters section on the left.

Open that, and find "ASP.NET_4.0.303189.0". You will find that the "Path" (executable) is MISPELLED!!! It has an extra slash. Edit the path and remove the extra slash. Restart IIS.

Ran my site afterwards and it came right up with no more problems.

Created By: amos 7/9/2013 4:37:32 PM
Updated: 7/9/2013 4:45:32 PM