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I recently had the same problem and this answer was not sufficient.
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I recently had the same problem and this answer was not sufficient.

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the web.config file was missing from the <b>Team Foundation System</b> webservice directory.
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the web.config file was missing from the Team Foundation System webservice directory.

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My installation of TFS 2008 started displaying odd behavior. &nbsp;The behavior is consistent in the Team System Web Access or Team Explorer in VS 2008. &nbsp;When I click on 'Source Control', I get the following error message:<br />
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Team Foundation services are not available from the server. Technical information (for administrator): TF30059: Fatal error while initializing web service<br />
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<a href="https://filedb.experts-exchange.com/incoming/2008/09_w36/56530/TFSError.txt" target="_blank" class="file-inline" title="Text from event viewer (2 KB)"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 512 512"><path d="M67.508 468.467c-58.005-58.013-58.016-151.92 0-209.943l225.011-225.04c44.643-44.645 117.279-44.645 161.92 0 44.743 44.749 44.753 117.186 0 161.944l-189.465 189.49c-31.41 31.413-82.518 31.412-113.926.001-31.479-31.482-31.49-82.453 0-113.944L311.51 110.491c4.687-4.687 12.286-4.687 16.972 0l16.967 16.971c4.685 4.686 4.685 12.283 0 16.969L184.983 304.917c-12.724 12.724-12.73 33.328 0 46.058 12.696 12.697 33.356 12.699 46.054-.001l189.465-189.489c25.987-25.989 25.994-68.06.001-94.056-25.931-25.934-68.119-25.932-94.049 0l-225.01 225.039c-39.249 39.252-39.258 102.795-.001 142.057 39.285 39.29 102.885 39.287 142.162-.028A739446.174 739446.174 0 0 1 439.497 238.49c4.686-4.687 12.282-4.684 16.969.004l16.967 16.971c4.685 4.686 4.689 12.279.004 16.965a755654.128 755654.128 0 0 0-195.881 195.996c-58.034 58.092-152.004 58.093-210.048.041z"/></svg>TFSError.txt</a>
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TFSError.txt

My installation of TFS 2008 started displaying odd behavior.  The behavior is consistent in the Team System Web Access or Team Explorer in VS 2008.  When I click on 'Source Control', I get the following error message:

Team Foundation services are not available from the server. Technical information (for administrator): TF30059: Fatal error while initializing web service



Team Foundation services are not available from the server. Technical information (for administrator): TF30059: Fatal error while initializing web service

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