I have an out of the box install (SharePoint and TFS on same box, external SQL server) and when I attempt to create a project I get an error as per the screenshot.
I have checked under Central Admin -> Site Settings -> People and Groups - Farm Administrators.
I can see my user domain account is listed, so technically I am a farm administrator and can do what i want.
Any idea why I get this error and what can I do about it?