Untested script updated for VS2012 from http://blog.donnfelker.com/2009/01/22/powershell-tfs-workspace-initialization-script/

TFS_VS2012.ps1

# Script that will: 
# 1. Create a workspace. Workspacce Name: <ComputerName>_Root
# 2. Get the latest code from repository

# TODO: This needs to handle making workspace PER PROJECT, which it doesn't yet.
# TODO: It should create a local directory for each project in TFS, along with the workspace to download the files.

[string] $tfsDomain = "foo"
[string] $tfsServer = "https://" + $tfsDomain + ".visualstudio.com/defaultcollection"
[string] $userName = [system.environment]::UserName; 
[string] $computerName = [system.environment]::machinename
[string] $workspaceName = $computerName + "_" + $userName +"_WS"   #Use 'WS' as an acronym for "WorkSpace"
[string] $folderName = "C:\Projects"; 

# Clear Output Pane
clear

# Loads Windows PowerShell snap-in if not already loaded
if ( (Get-PSSnapin -Name Microsoft.TeamFoundation.PowerShell -ErrorAction SilentlyContinue) -eq $null )
{
    Add-PSSnapin Microsoft.TeamFoundation.PowerShell
}

# Set up the TF Alias</pre>
# Find where VS is installed. 
$key = Get-ItemProperty -path HKLM:\SOFTWARE\Wow6432Node\Microsoft\VisualStudio\11.0
$dir = [string] (Get-ItemProperty $key.InstallDir)
Set-Alias tf "$dir\tf.exe"

Write-Progress -Activity "Initializing Tree" -Status "Percentage Complete" -PercentComplete(10)

# Create the folder
echo "Creating folder: $folderName"
new-item -itemtype directory -path $folderName -force
echo "Completed Creating folder: $folderName"

[system.environment]::newline
Write-Progress -Activity "Initializing Tree" -Status "Percentage Complete" -PercentComplete(20)

# Move to folder
echo "Navigating to $folderName..."
cd $folderName
echo "Arrived at $folderName"

[system.environment]::newline
Write-Progress -Activity "Initializing Tree" -Status "Percentage Complete" -PercentComplete(30)

# Delete the workspace if it exists. 
echo "Deleting workspace (if exists): $workspaceName"
$expr = "tf workspace /delete " + $workspaceName + " /noprompt"
$output = invoke-expression $expr
echo "Done deleting workspace."

[system.environment]::newline
Write-Progress -Activity "Initializing Tree" -Status "Percentage Complete" -PercentComplete(40)

# Create the workspace 
echo "Creating workspace: $workspaceName"
$expr = [system.string]::Format("tf workspace /new /computer:{0} /server:{1} /noprompt {2}", $computerName, $tfsServer, $workspaceName)
$output = invoke-expression $expr
echo "Done Creating workspace: $workspaceName"

[system.environment]::newline
Write-Progress -Activity "Downloading Entire Source Tree" -Status "% Complete - this bar will not move for awhile. This process takes awhile." -PercentComplete(50)

# Get the latest
echo "Getting the latest code from: $tfsServer. This could take awhile..."
$expr = "tf get"; 
$output = invoke-expression $expr
echo "Done getting latest." 

Write-Progress -Activity "Initializing Tree" -Status "Percentage Complete" -PercentComplete(100)

echo "Tree initialization is complete."