I am preparing to speak next week down in Los Angeles at a user group and am upgrading my demo image from TFS Beta 2 to TFS Beta 3. After the initial install I couldn't seem to create a project and project creation was taking 20 minutes or more. On a whim I decided to up the memory on my VM from 512MB to 1GB. Voila! I could now create a project and it only took 3-4 minutes. Big, big difference.
Don't know if this will solve everyone's problem creating projects but it did mine.