Setup Error 28100: Failed to load EventService proxy object: Requested registry access is not allowed.

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During TFS install, if you recieve error 28100 (Failed to load EventService proxy object: Requested registry access is not allowed.), most probably this is due to regkey left over from a previous TFS installation. TFS uses this regkey to locate registerd servers and make calls against them. 

Here is the workaround to solve this problem:

1- open regedit and go to: HKEY_CURRENT_USER\Software\Microsoft\VisualStudio\8.0\TeamFoundation\Servers

2- locate a key under servers with the name: <%YourServerName%>

3- delete this key (not only the value, yet the entire key).

4-rerun setup.

I hope this helps.