New Team Project Wizard encountered an error and could not continue

Hi,
I installed Team Foundation Client on my system but I got this error message when I opened VS 2005 and tried to create the new team project. Why can’t I create a new project even I have right to create a new project.
Please share some ideas and instruction to resolve this issue as soon as possible.
Thanks in advance.
TF0177: Team Project Creation Failed
New Team Project Wizard encountered the following error and could not continue.
Error
An error occurred in the New Team Project Wizard while attempting to create a site on the
Following SharePoint Web application:tfs-portal.basler.corp.
