Just by installing TFS 2010 using its default settings comes with WSS 3.0. This also means not SharePoint Powershell, only simply PowerShell.
You should uninstall WSS 3.0 (after disconnecting your Project Collections via the TFS Administration Console) and then re-install at least SharePoint 2010 Foundation. If you have already documentation in your sites, simply make sure you backup your databases
Once this is done, you would again via TFS Administration Console, select to connect your project collections to SharePoint, after installing SharePoint Extensions (from TFS installation kit). This would activate 2 solution packages. Make sure you give Farm permissions to your TFS Service, etc. (MSDN guide is quite on that).
There is a lot more to say here, but these steps should get you on the right track.