Once files have been added to TFS source control, you will no longer be able to make changes such as deleting, moving, and renaming without collaborating with the Team Foundation Server via Teamprise. Files in TFS source control are read-only and attempts at changing files outside the source control system will be restricted.
To delete a file or folder in Teamprise, complete the following steps:
In your Source Control view right-click the file or folder you wish to delete. Make sure it is not checked-out for editing.
Click Delete from the popup menu.

In the Source Control Files view a new pending change appears in the Pending Changes column. In the Pending Changes - Source Files view the deleted file is added to the list of pending changes with a change type of delete. To complete the deletion click the check-in icon to commit the change. The file is removed from the source control repository, as well as the local working folder, and no longer appears in the view.

Note: It may seem counter-intuitive to "check-in" a file to be deleted, but remember, check-in actually means commit the change. In this instance the type of change is a deletion. Delete, move, rename, and add are considered namespace changes and TFS records these as it does any other changes. A check-in of a deletion also produces a changeset and can be retrieved using the Teamprise View History operation.
Remember you can always Undo a pending change, even a namespace change.
To rename a file or folder in TFS source control, complete the following procedure:
In your Source Control File view right-click the file or folder you wish to rename. Make sure it is not checked-out for editing.
Click Rename from the popup menu.
In the Rename dialog, type the new name for the file and click OK.

Teamprise pends a rename in the Source Control and Pending Changes - Source Files views. To commit the change to TFS source control, click the check-in icon.

To move files or folders from one TFS source control location to another, complete the following procedure.
In your Source Control File view right-click the file or folder you wish to move. Make sure it is not checked-out for editing.
Click Move from the popup menu. In this example, we will move an entire directory.
In the Move dialog, click Browse to bring up the Browse for Server Folder dialog. Select a destination server folder. In our example we will move the xslt directory up one level to the media_mill directory.

In the Move dialog, check that the new path is correct and click OK.

Teamprise pends a rename in the Source Control and Pending Changes - Source Files views. To commit the change to TFS source control, click the check-in icon.
Note: Move is a namespace change of type rename because it is technically a renaming of the path to the source file.

See Related Tasks:
Adding local files to source control
Checking in files
Undo Pending Changes