TFS 2008 SP1 Upgrade Part 2 – Error TF30059: Fatal error while initializing web service from server

The night after my first failed upgrade I kicked off another attempt.
This time I was to install Service Pack 1 for Visual Studio 2008 before installing the service pack for Team Foundation Server. A few problems I came across:

1) When I ran the SPInstaller.exe of the VS2008 SP1 it threw me an error log saying the .net 3.5 install failed. I discarded the undo disk, and tried again except this time I ran the .net 3.5 install manually, and then kicked off the SP1 which seemed to complete fine.

2) After finishing VS2008 SP1 update I wanted to test the state of the TFS server, but when I tried to access it I received the error:
Error TF30059: Fatal error while initializing web service from server

I found a blog at:
which explained that you need both SP1 installed for TFS to become operational.
So I was installing TFS SP1 watching it go up, up, down down.
Error 29112. Team Foundation Server Configuration: Either SQL Reporting Services is not properly configured, or he Reporting Services Web site could not be reached.
Well, I open the Reporting services tool and find that the service was not started. So I start it and try again.

And at last, after 4 hours of tinkering, those beautiful words ‘TFS SP1 Install Complete’. I cleared the AT cache once more just so there were no more mistakes. Shutdown, merge undo disks, and at last, the TFS SP1 upgrade is complete.

Now I just hope that those virtual machine lockups on windows server 2008 were due to TFS08 not being SP1.