I am working for a start up company these days and a part of my job requires me to (help/guide) Project Manager set up Development Methodology and related things in coordination with Development Manager.
Sometimes (rather usually :)) setting up processes is a difficult thing, its like coming up with one size fits all solution for different scenarios. So when you talk about Development Methodology specially when you are doing development on Microsoft platform, MSF becomes almost natural choice for you.
Microsoft is rolling out MSF Agile with it Visual Studio Team System. MSF Agile beta process guide lines are already made available on msdn. MSF Agile is an important initiative from Microsoft and any one who believes in Agile methodologies should take a look at MSF Agile and the way it is supposed to be integrated with Visual Studio Team System.
I havent got the chance to experience the full cycle as yet since the Team Foundation Server is not supported on 64 Bit platform (This is really strange since Microsoft is promoting x64 a lot and its main Team Foundation Server).