TFS - how to create branches

Simple.

Select a folder in TFS and right-click. There is branching/merging option there.

I like this document - very easy read

http://howstevegotburnedtoday.com/2006/10/19/document-from-vss-to-tfs-an-introduction-to-team-foundation-server-version-control-from-a-visual-sourcesafe-users-perspective/