.NET Update gets in the way of TFS

If you have installed (automatically through Windows Update or manually) an update for .Net 2.0, you now may encounter issues connecting to TFS as described in Michael Ruminer's blog post. But no worries, there is an easy way out for you!
The post suggested that you uninstall the update, but fortunately as I started on uninstalling it I have read the comments to the post.
Buck Hodges commented: "If you hit this, simply turn off client-side tracing that you or someone else previously enabled (e.g., in devenv.exe.config), since it's not on by default."
And indeed, editing devenv.exe.config worked like a charm for me. Beats uninistalling things, doesn't it?
Thanks guys for making the solution available at such short notice!