A new feature in TFS 2008 (Orca) is the ability to easily point TFS to use an existing Sharepoint farm. For example, if you've got an existing sharepoint deployment for your project team, you can configure TFS 2008 to use that same farm instead of setting up and maintaining another farm just for TFS. Check out this blog post by Sudhir Hasbe http://blogs.msdn.com/sudhir/archive/2007/06/25/sharing-your-corporate-sharepoint-server-with-multiple-tfs-servers.aspx
Its all good except when I tried it with TFS 2008 Beta 2, you seem to have some restrictions in your selection of path. It only works correctly when your path is a single level deep. Ie, http://wssserver/TFSSites, if you try to point it to http://wssserver/development/TFSSites, some functionalities works, but a lot of things don't.
Sent a feedback to MS and apparently is by design. So from my tests, it seems that you can have WSS on a corporate farm, but as long as that path is onlye 1 level deep.