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TF31001 error when connecting to TFS 2010

The Server returned the following error: 246021. An error occurred while processing your request. Technical Information (for Administrator): SQL Server Error 1934 (retry)


This error is caused due to SQL Server Server settings of "noCount" and/or "numeric round about" being turned on. Run ssms.exe, right click on the SQl Server node, and invoke the Proerties dialog. Select the "Connections" node, and turn off both items.


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