Several of my co-workers have run into the problem of exporting work items into the Excel 2007. The problem was/is during the export of HTML type fields (like description) in some cases they have gotten #### instead of actual words.
There is a forms post that have one of the permanent solutions listed, but I found a workaround to the problem or at least temporary solution by formatting the cell/column.
I have selected "Format Cells" -> Number -> Custom -> General -> OK
and the final result is:
alternative approach, if one knows how to use new Excel ribbon menus would be selecting cell/column and: Home ->Style -> Normal to reset the style and to re-enable wrapping: Alignment -> Wrap Text
So what is the moral of the post? Lets stop blaming TFS and start learning on how to use Excel :)