What is the procedure to list all the files checked out from team foundation server for a particular project? Also needs to traverse directories and sub directories for listing all files that are checked out.

There is a simple solution for this issue, provided through a command line tool of VS 2008. Open Visual Studio command prompt and use tf.exe application.

All checked out files in $/ProjectTemp:

tf.exe status $/ProjectTemp/user:* /s:http://TfsInstance:8080 /recursive

All files checked out to Nauman:

tf.exe status /user:Nauman /s:http://TfsInstance:8080