IMHO, DC disables write cache on particular physical disk, not on all the disks across some controller.
Single server TFS configuration works for small teams, and so far I did not see any problems with an extra IO added by DC (besides sneaky disabling write caching when installed on physical host).
Anyway, I ended up installing DC on VM. So, currently I have Hyper-V host with VMM Server joined to a domain which runs following VMs: DC, SSTP/PPTP VPN, single server TFS + WSS 3.0, 2 build agents and 2 test agents. If I find any issues with IO, later
I'll move few VMs to a new disk(s).
I see why this kind of configuration might be a bad idea for enterprise, but for my purpose it works fairly well. It is cheap, fits my current hardware, and I know exactly how to scale it up an out if necessary.
Thanks again for your time, Ace.