MSDN article concerning the subject says:
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From the installation DVD for Visual Studio Team Foundation Server, start either the 32-bit or the 64-bit installation wizard
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On the Welcome page, click Next.
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On the License Terms page, read the terms of the license. Click I have read and accept the license terms, and then click Next.
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Click Team Foundation Server Proxy, and click Install.
But I have nothing like Team Foundation Server Proxy item:
Best Answer
Based on the screenshots, it looks like you might be attempting the install on Windows 7? If so, that is not possible, TFS Proxy will only install on server OSes.