Just behind the "progress-bar-almost-at-the-end-when-an-error-message-pops-up-and-the-whole-damn-thing-rolls-back" scenario, one of the most dreaded aspects of an installation of Team Foundation Server is the System Health Check: another progress bar followed by The Red X of Doom, The Yellow Triangle of Worry, or—if you’re lucky—The Green Check of Bliss. In case you’re wondering just what exactly the System Health Check is checking, there’s a nice little XML file in the AT folder on the installation media called hcpackage.xml. This file contains all of the warning messages along with the associated WMI queries. The queries include checks for processor speed, available disk space, and the version of SQL Server you are using, among other things. They even tag the issues with codes for the applicable scenarios such as a single-server or dual-server or even a build machine. It's pretty enlightening so give it a look if having trouble with that System Health Check.
jb