If you've been bummed out because your team works in an agile fashion but find Microsoft Project too linear, regular bug tracking tools not cutting it at projects, or VSTS too complex to setup, I really recommend checking out TargetProcess. The folks at TP have done a fantastic job building an agile project management system. They are on the verge of the 2.2 release which introduces some stellar features like Subversion interation, reporting enhancements (including the awesome iteration burndown report), and test case library. What is more exciting is that they are rapidly evolving the product to take it even further (TP 2.1 is just barely a month old and we're about to see 2.2 in the coming weeks).
We are 60 days into using TP and I have to say it has been far the easiest package we ave ever used. It was super easy to get up and running with as the TP team spent some time focusing on usability. Our team loves the product because they can get their projects in place, status updated, and things closed with minimal effort. The time spent by the TP team on usability is paying off in spades. Like every product, it has a few tweaks that are needed and we have found the TP team quite responsive and very open to feedback. That combination makes it a winner for any team that is looking to get their projects under control. It's one of the few products that I get excited about when I hear that a new release is around the corner! Considering it deals with a topic that is usually associated with boring and tedious that is saying a lot!
If you are a small team, or even a big team with smaller feature teams, I highly recommend checking it out.
I'm working on cleaning up and posting a few extensions I wrote for TP including Sharepoint event publishing and Outlook calendar/task synchronization over the next few weeks.