I’ve installed TFS 2012 on a remote Windows 2008 R2 Server (www.mydomain.com) which has a build controller. I created a build agent on my local machine, but my builds just stay in the queue for a long time before giving up with an error. The message says Exception Message: TF30063: You are not authorized to access http://mydomain.com:8080/tfs/defaultcollection. In Visual Studio, it names my builder controller as “myhost – Controller” where myhost is the hostname given to the Windows 2008 R2 server. The hostname is just used internally to name the machine.
EDIT:
I am not using active directory just plain local users.
I have this same setup and the “workaround” i use is adding a Host record to your working machine that matches the name it is looking for to your I.P. address or actual host name. It has been working fine.
Edit host record quick google(http://www.howtogeek.com/howto/27350/beginner-geek-how-to-edit-your-hosts-file/)
and put in [expected host name] [actual I.P. or hostname]
then it will resolve appropriately