Distributed developer team requires version control system that allows Internet access and nicely integrated with Visual Studio.
Please, share your experience. What system will you personally choose?
Given that you're in the Microsoft world and given that you are most likely looking at something like DVCS due to the distributed team, between Git and Mercurial, I'd go with Mercurial as it has a bit nicer support for Microsoft.
The downside is that integration with Studio is just not there (there are some third party options, but none that I have personally worked with).
On the flip side, TFS can (semi) work remote, but is really not strong if you're just doing internet access vs. being on a VPN, etc. (and even with the VPN it can be slow... we once had to deal with a TFS server on a different continent). Although I would not be suprised if MS comes out with a DVCS due to their popularity down the road.
There's no option ;) Give a try to Plastic SCM specially if you need to be distributed inside Visual Studio!
It is free for up to 15 users and it covers all the basics and not so basics:
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