I was installing TFS on my local laptop last week and just got around to setting up my initial collection using the TFS Console tool and “Bang!”  I received a message that told me that my local database didn’t have the full-text search option installed.  I remember the option in a (long) list of options and didn’t remember fiddling with it.   Whatever the reason, if you are installing TFS Basic on your box, make sure you have that little check ticked, or you won’t get the big fat one pictured above.  I installed SQL 2008 Developer edition which worked well for what I needed so far, and just needed to run the “Add Feature” option instead of the “Repair” option.

HTH