TFS is a great tool for Agile development, especially if you are already using it to develop your code! There are some very good templates out there already. Scrum for Team System is my favourite, and Microsoft now has their own: Scrum 1.0. You can modify any of these templates to add fields, change statuses, and modify the flow.
If you are running Visual Studio 2010, here's the quick and dirty on how to modify the templates:
1. Open Visual Studio Command Console, then go to
C:\Program Files (x86)\Microsoft Visual Studio 10.0\Common7\IDE>
2. Run Command to Export the xml
witadmin exportwitd /collection:http://tfs_server_name:8080/tfs/collection_name /p:"project_name" /f:"output_xml_file" /n:"Task"
This will generate output.xml in the same location.
Eg: >witadmin exportwitd /collection:http://vprdtfs2010:8080/tfs/quorumdevprojects /p:"er57q1" /f:"output.xml" /n:"Task"
If you want to export the User Story template, simply use "UserStory" instead of "Task".
3. Change the file as necessary. Remember, the output is simply an XML representation of the template and it is pretty intuitive when you open it up and start digging. Add states, fields, transitions, etc.
4. Run Command to Import the xml
witadmin importwitd /collection:http://tfs_server_name:8080/tfs/collection_name /p:"project_name" /f:"input_xml_file"
Eg: >witadmin importwitd /collection:http://vprdtfs2010:8080/tfs/quorumdevprojects /p:"er57q1" /f:"output.xml"