The Project Server 2007 - TFS Connector has been released on CodePlex.

The Visual Studio Team System Project Server 2007 Connector is designed to integrate the project management capabilities of VSTS with Project Server 2007.
It's been developed by the Visual Studio Team System Rangers in response to significant customer demand for a connector solution. Future versions of Team System will have native integration with Project Server, in the meantime this Connector solution is the best way to integrate the two Microsoft products.