Could not load type ‘Microsoft.TeamFoundation.WorkItemTracking.Client.WorkItemTypeDeniedOrNotExistException’ from assembly ‘Microsoft.TeamFoundation.WorkItemTracking.Client, Version=188.8.131.52, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a’.
So the problem was that I have installed Team Explorer 2008 after installing Visual Studio 2008 SP1. We need to installed Team Explorer 2008 first and then apply SP1 so that it applies SP1 to Team Explorer as well. Look at what version you see if you go to Help -> Pick “Microsoft Visual Studio 2008 Team Explorer” from Installed Products. If you see the version 9.0.30729.1, you should be fine otherwise you need to reinstalled Visual Studio 2008 SP1 to get rid of that error.