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Visual Studio Team Foundation Server – Project Server 2007 Connector is now available at http://www.codeplex.com/pstfsconnector.
Future versions of Team System will have native integration with Project Server, in the meantime this Connector solution is the best way to integrate the two products.
The connector synchronizes Project, Resource and Task data between TFS and Project Server 2007. Updates to work items in TFS are automatically applied to the corresponding assignments and tasks in Project Server and vice versa - nice! Also helps with resource management across multiple projects and program-level reporting.