Microsoft have released guidelines for using MSF in an Agile Development methodology. Interesting stuff Thsy describe it as:
MSF for Agile Software Development is a scenario-driven, context-based, agile software development process that utilizes many of the ideas embodied in Team System.
There’s more information and related stuff here
I personally can’t wait for Team Systems to be released. It’s going to change the way most developers in Microsoft technologies work .. probably the biggest impact is moving away from the now-ancient Visual Source Safe 6.0.