Version Control | TFS 2010 problem

Hi,

I sincerely hope that someone can help with this problem.
I am using Toad for Oracle Base Version 11.5.0.56 (running on win XP)and trying to connect to TFS 2010.
The idea is to use it without Team Coding enabled.
I have done the configuration as specified and the connection works perfect.
I have multiple workspaces on my machine and then selects the appropriate one.
The one I am using is the following:

Workspace name: MKruger_Main
Disk Mapping: C:\TFS\Work\Main\MSLTopline
Source Control Folder: $/CodeBase/Main/MSLTopline

The code structure is as follows:
C:
->TFS
->Work
->Main
->MSLTopline
->Database
->TaxSystem
->STOPLOSS.bdy

When clicking the Source Control Version Control Browser I get prompted which TFS workspace I wish to use.

The information in this dialog are as follows (all seems fine to me):
The workspace in the combobox: MKruger_Main
Server : ptfs01
Owner: Domain\username
Computer: Computer Name
Work Dir: C:\TFS\Work\Main\MSLTopline
Comment:

I then open the file I wish to edit from File->Open.
In this case = C:\TFS\Work\Main\MSLTopline\Database\TaxSystem\STOPLOSS.bdy

It then opens up file in the Editor.
I then right click in the pane where the code resides. From there I select : Source Control -> Check Out File
This is where it all becomes hazy to me. I then get prompted by a dialog window, with the title Select Project
The window contains a tree view with the top node having the title Microsoft Team Foundation Server
When I expand the tree view, the second node contains the Team Foundation Project name. In this case = CodeBase
Underneath CodeBase the version control structure is displayed, Dev, Main, Rel etc.
I then choose CodeBase as I (and presumable incorrectly!) see this as the project.

When clicking OK the problems start.
I get a warning message:
File C:\TFS\Work\Main\MSLTopline\Database\STOPLOSS.bdy is not in the Source Control Project Working Directory.
File will be saved to C:\TFS\Work\Main\MSLTopline\CodeBase\

Problem 1:
As seen in the message, for some reason the TFS Collection Name gets appended to the path. In my numerous attempts I have seen this in all sorts of variation that the TFS Collection Name gets appended to the path.
I find this strange as I have never supplied this as input. In all probability it gets queried from TFS.

Problem 2:
Why do I get prompted to select the project to what project is referred to here?

Problem 3:
Also it is no clear to me what is meant by the Source Control Project Working Directory in the warning message.
I was under the impression that this should be the TFS workspace. In this case C:\TFS\Work\Main\MSLTopline
I opened the file from there so obviously it refers to something else here.

Can someone please be so kind as to shed some light here. Any help will be welcome!

Thanking you in advance.

Kind regards,
Morné