I was trying to connect to a TFS server in another domain, but without success. I could connect to the TFS web services through FireFox after providing the correct credentials, but Visual Studio was simply failing with a TF31002: Unable to connect to this Team foundation Server: tfs.









Click OK and the moment of truth…










We have a credential prompt!!! Type in correct credentials for the other domain and…








Looks like automatic proxy detection somehow prevents IE and Visual Studio from connecting to TFS successfully. I would like to point out that "Automatic proxy detection is enabled" was not listed amongst the possible reasons for failure in the TF31002 error.