Create a new website in Visual Studio by selecting File from the toolbar and selecting New Web Site.
Create a Visual Basic website.
Remove (delete) all the files.
Replace with the following structure:
From the File menu, select Source Control, then Add Web Site to Source Control...
Add the web site to Source Control.
Check the files in
The directories will show up in Source Control
Close Visual Studio and install DotNetNuke on top of the website you just created
Open Visual Studio and then open the website using Open Web Site. You will then be prompted for your Team Foundation password.
Remove the Placeholder.txt files.
When you create code in either the DesktopModules or the App_Code folder and check in the code...
It is checked into Source Control normally.
Only the App_Code and the DesktopModules directories are stored in Source Control, not the entire DotNetNuke site.
special thanks to Ian Lackey for showing me how to do this with http://www.codeplex.com/IWeb