Update (Jan 2006): If you would like to use some of the features of VSTS from Eclipse then you might want to take a look at my new employer, Teamprise. They provide an eclipse plugin to access Team Foundation Source Control from Eclipse running on multiple platforms including Windows, Linux and Mac OS X.
Original Post: I have just managed to get a quick test java client talking to VSTS and retrieving a list of projects running on my Team Foundation Server. I know this is a small step towards the goals of the VSTSEclpse project, but I'm really happy I've got this working and wanted to tell everyone. Thanks to Davanum Srinivas, Dexter Wong, Evgeny Beskrovny and the rest of the folks over at the axis-user mailing list for all their help in getting NTLM authentication with a Windows Web Service working from a Java application. I've been trying to get NTLM authentication working for something I needed to do at work recently, so this came in doubly handy (another example of working on Open Source projects in your own time directly benefiting your employer).