Q:

customized pages in TFS 2008

Can we extend the Team Site to host our own pages. i.e. Does TFS allows you to add pages/web parts that are developed by us. I have found few clues in Google but no one could elaborate properly.

A:

Yup - a TFS Sharepoint site is pretty much a standard WSS site.  You can in fact point TFS to a different WSS or MOSS server if you want, but bear in mind that in TFS2008 the project sites all have to live as 
http://**wssserver/sites/**TeamProjectName
Good luck,
Martin.

