To package and publish web sites with TFS 2010 Build Server, you can use MSDeploy and some of the new MSBuild arguments. For example:

/p:DeployOnBuild=True

/p:DeployTarget=MsDeployPublish

/p:MSDeployPublishMethod=InProc

/p:CreatePackageOnPublish=True

/p:DeployIisAppPath="Default Web Site/WebApplication1"

/p:MsDeployServiceUrl=localhost

Does all the work for you! Unfortunately these arguments are not very well documented, yet. Please feel free comment with pointers to good docs. You can enter these arguments when editing the Build Definition, under the Process tab and the Advanced section:

If you’re working with these things, I’m sure you’ve not missed the PDC 2009 presentation by Vishal Joshi about MS Deploy.

A few links on the topic:

http://stackoverflow.com/questions/2636153/where-is-the-documentation-for-msbuild-arguments-to-run-msdeploy

http://blogs.msdn.com/aspnetue/archive/2010/03/05/automated-deployment-in-asp-net-4-frequently-asked-questions.aspx

http://www.hanselman.com/blog/WebDeploymentMadeAwesomeIfYoureUsingXCopyYoureDoingItWrong.aspx