There is a good chance you stumble into this error message in VS 2010, while accessing a TFS 2012 instance. If you do, you should use the Visual Studio Team Explorer 2012 (included in all Visual Studio editions or may be separately downloaded) to create a team project on a TFS 2012 server. If you use VS 2010, you will get an error about not having permission.
The error message is very misleading, because it’s not a problem with your permissions.
