TFS Build Watch (or BuildWatch for short) is an ultimate build notification tool that strives to be as much appealing emotionally to the development team as being informative and helpful.
Currently the BuildWatch is in early stages of development and works only as a stand-alone proof-of-concept GUI application that directly connects to a Team Foundation Server and does all the monitoring and notification stuff itself.
You can try it by pulling the source from https://sourceforge.net/p/tfsbuildwatch/code/ci/default/tree/. The code was writen using Visual Studio 2010 on dotNet 4, tested with TFS 2010. You will need to tune settings manually to setup correct TFS server URI and project.