While there is a considerable amount of work involved in setting up an on-premises Team Foundation Server, we have made our hosted TFS solution very easy. In fact, configuring a hosted TFS account only takes a few minutes.
To show how easy it is, we created a short video that goes over the complete process. The one thing you will need to have is Microsoft Visual Studio Team Explorer 2010. The free download from Microsoft adds the tooling for Visual Studio to manage Team Foundation Server.