Issue with build. Message Error while applying patch.

Having issues with build. We had a working system for a year and it stopped working. Its showing error Error while applying patch.




[07:08:51]: Updating sources: agent side checkout... (2s)
[07:08:53]: [Updating sources: agent side checkout...] Failed to perform checkout on agent: TFS failed. ExitCode: 1, Stdout:: TFS Native Verifier v6.0 Copyright (C) 2006-2011 JetBrains s.r.o.
INFO  - Use Tfs from JetBrains.TeamCity.Tfs.Tfs10Accessor
TFS Native Accessor v6.0 Copyright (C) 2006-2011 JetBrains s.r.o.
INFO  - Connecting to server http://tfs.ourdomain.com:8080/tfs/WebServices
Build Patch:
  Server='http://tfs.ourdomain.com:8080/tfs/WebServices'
  Username='emea\planetdev'
  Mappings File='C:\TeamCity\buildAgent\temp\cache\TC-TFS-278-1369964331173.mappings'
  CurrentVersion='17106'
ERROR - Team Foundation services are not available from server tfs.ourdomain.com\WebServices.
Technical information (for administrator):
  Unable to connect to the remote server
System.Exception: Team Foundation services are not available from server tfs.ourdomain.com\WebServices.
Technical information (for administrator):
  Unable to connect to the remote server ---> Microsoft.TeamFoundation.TeamFoundationServiceUnavailableException: Team Foundation services are not available from server tfs.ourdomain.com\WebServices.
Technical information (for administrator):
  Unable to connect to the remote server ---> System.Net.WebException: Unable to connect to the remote server ---> System.Net.Sockets.SocketException: No connection could be made because the target machine actively refused it 127.0.0.1:8888
   at System.Net.Sockets.Socket.DoConnect(EndPoint endPointSnapshot, SocketAddress socketAddress)
   at System.Net.Sockets.Socket.InternalConnect(EndPoint remoteEP)
   at System.Net.ServicePoint.ConnectSocketInternal(Boolean connectFailure, Socket s4, Socket s6, Socket& socket, IPAddress& address, ConnectSocketState state, IAsyncResult asyncResult, Int32 timeout, Exception& exception)
   --- End of inner exception stack trace ---
   at System.Net.HttpWebRequest.GetRequestStream(TransportContext& context)
   at System.Net.HttpWebRequest.GetRequestStream()
   at Microsoft.TeamFoundation.Client.TeamFoundationClientProxyBase.CreateSoapRequest(String methodName, HttpWebRequest& request, XmlWriter& requestXml)
   --- End of inner exception stack trace ---
   at Microsoft.TeamFoundation.Client.TeamFoundationClientProxyBase.CreateSoapRequest(String methodName, HttpWebRequest& request, XmlWriter& requestXml)
   at Microsoft.TeamFoundation.Framework.Client.LocationWebService.Connect(Int32 connectOptions, ServiceTypeFilter[] serviceTypeFilters, Int32 lastChangeId)
   at Microsoft.TeamFoundation.Framework.Client.FrameworkServerDataProvider.Connect(ConnectOptions connectOptions)
   at Microsoft.TeamFoundation.Framework.Client.FrameworkServerDataProvider.Authenticate()
   at Microsoft.TeamFoundation.Client.TfsConnection.<Authenticate>b__2()
   at Microsoft.TeamFoundation.Client.TfsConnection.UseCredentialsProviderOnFailure(Action action, Int32 retries, Boolean throwOnFailure)
   at Microsoft.TeamFoundation.Client.TfsConnection.Authenticate()
   at Microsoft.TeamFoundation.Client.TeamFoundationServer.Authenticate()
   at JetBrains.TeamCity.Tfs.Command.Do() in c:\Agent\work\7b38d9d0edb21a5b\TfsNativeAccessor\src\Command.cs:line 25
   at JetBrains.TeamCity.Tfs.Program.Main(String[] args) in c:\Agent\work\7b38d9d0edb21a5b\TfsNativeAccessor\src\Program.cs:line 275
   --- End of inner exception stack trace ---
   at JetBrains.TeamCity.Tfs.Program.Main(String[] args) in c:\Agent\work\7b38d9d0edb21a5b\TfsNativeAccessor\src\Program.cs:line 349
, Stderr::


Any help much appreciated, I have looked at things like connectivity to the server but everything is fine as it has been and no changes to firewall rules so not sure whats causing this issue.
Thanks.

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