Unlike Visual SourceSafe (VSS), which relied on a file-based storage mechanism, Team Foundation version control stores all artefacts, as well as a record of all changes and current check-outs in a SQL Server database which makes it highly reliable and scalable. It supports features such as multiple simultaneous check-outs, conflict resolution, shelving and unshelving, branching and merging, and the ability to set security levels on any level of a source tree, alongside the most visible features of document versioning, locking, rollback, and atomic commits. The source control mechanism integrates with TFS Work Item Management as well. TFS administrators can enforce check-in policies that require specific requirements to have passed and individual versions of files can be assigned labels.
This session from a MSDN Live Meeting held on February 15, 2011 at Microsoft in Belgium -- is targeted towards developers who want to know all the details about the new version control features in Team Foundation Server 2010.