Setting up VCS root for TFS 2013 preview

Hi,

I am trying to setup a TeamCity server over my TFS 2013 preview and I am getting a nasty message (Below) any help will be useful since I need to setup my CI before Monday.
Both TFS and TeamCity are hosted in-house on separate machines. I have installed Team Explorer for preview (http://www.microsoft.com/en-us/download/confirmation.aspx?id=39314)
in CI server. In my TC project setup when I hit "Test Connection" on Adding a NEW VCS root, test fails with below error.

I know when TFS and TC are hosted on the same machine it works properly but in my current configuration (separate server for TFS and TC) it won't work!

Error message:

TFS failed. ExitCode: 111, command: C:\TeamCity\webapps\ROOT\WEB-INF\plugins\tfs\bin\tfs-native.exe @@C:\TeamCity\temp\TC-TFS-40-8960_11\command.params, in file: {http://myserver:port/tfs/DefaultCollection, /hash:S, /noProxy, C:\TeamCity\temp\TC-TFS-40-8960_10.result, ConnectionTest, $/teamname/solutionFolder}, completed in: 0 second(s)
stdout: TFS Native Verifier v8.0 Copyright (C) 2006-2013 JetBrains s.r.o.
Running under .NET Framework 4.0.30319.18213
ERROR - No TFS assemblies were found on the system. Please make sure you have Microsoft Team Explorer 8.0, 9.0, 10.0 or 11.0 installed



Thanks for you help!

-Robert

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