Team Foundation Server 2010 - Working folder is already in use

Issue: Working folder is already in use

Resolution:
1. Open up command prompt from Start >> Programs >> Visual Studio 2010 Tools.
2. Run the following commands:

- to check the existing work-spaces on your local machine:
   tf workspaces /server:http://:8080 /computer:-client
    tf workspaces /computer: /owner:* /format:detailed

- to delete those work-spaces
    tf workspace /delete /server:http://:8080 ;\

Try the delete for each of the workspace or for whichever workspace you don't need. If you deleted all, you can start afresh by creating new workspaces.