How can I set up email notifications for builds and check-in's on TFS?
I have set it up via the "Project Alerts" menu in team explorer, but when the build fails or even if I check in it does not send the email.
Using Alerts explorer found in Team Foundation Server Power Tools you can set up Email notifications for check ins and build. For builds only, there is build notification tool which also comes as part of Team Foundation Server Power Tools install.
Take a look at the msdn article for detailed instructions.