I guess that I didn't notice the conversation digress, but I really should clarify that it has never been my intention to suggest, or seem to suggest, any such thing. Tools helps, and I think that they are important. I have my own preferences, based on my experiance and the way I like to work.
I am mostly talking about OSS tools because I am familiar with them and it makes it easy to point out and show. The best project management system that I have worked with is JIRA, but Trac does quite a bit of the work, and doesn't require as complex a setup.
There is no correlation or dependency between the tools that you use and the way that you work. And you most assuredly can use TFS to be agile.
I do think that tools can be of significant help, you can certainly be agile without them, but it is easier with them. My issues with TFS has nothing to do with agility, and everything to do with seamless usage, a whole seperate issue alltogether.