Why isn't there a Team Foundation Server Express Edition?
Almost 3 years and 16 answers later,TFS Express is now a fact.
The Express Editions are specifically designed for individuals who do not have access or, more bluntly, cannot afford the full versions of Visual Studio but who would like to develop in the .NET Framework.
Team Foundation Server on the other hand, is specifically designed for corporations which has software development teams with a number of members. Corporations (nor startups) have never been the target of the Express product.
You can still take advantage of Express editions and collaborative tools by using open source products in conjunction with them, e.g., use Subversion for source control, Cruise Control for continuous integration, etc. They will give you most of what you need and still allow you to use the Express editions in a team environment.
I am not sure, however, if specifically using Express editions in a team environment is a violation of its EULA. Hope not :P
There is an Express version of TFS coming out with Visual Studio 2012:
http://blogs.msdn.com/b/bharry/archive/2012/02/23/coming-soon-tfs-express.aspx
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