How to change local folder for TFS

What?
I installed Business Intelligence Development Studio 2008 (BIDS) and connected it to a Team Foundation Server 2010 (TFS) instance and set my working local folder to my home directory. When the rest of my colleagues installed it however, they decided to use a common local directory for all workstations so configuration files would not need to be modified.

So?
Once installed, my BIDS install would continuously check-out files and store these in the home directory. I tried the general settings (Tools > Options) but to no avail.

How?
The way to change this was:

1. Connect to your Team Foundation Server (for me this was already done)
2. Go to File > Source Control > Workspaces
   
3. Edit... the workspace which is causing the problem
   
4. Change the local folder
   
5. All the files on TFS should copy over to your local folder; once done
   1. close the dialogs
   2. click on the TFS icon in Source Control Explorer
   3. and check what it says next to "Local Path" (for me this said the name of the local folder that I specified just before)