I have been working with TFS since the 2005 version and one of the issues that keeps being brought up is the rolling up of hours and state transitions when the state of linked items change. In the next version of TFS the hours roll up works hoewever not the state transitions.
I have made a recommendation on the Visual Studio User Voice site that the state transitions of linked work items be addressed in the next TFS version. If this is something you have encountered and you know how important this functionality is. Please join me in voting for this feature to be addressed in the next version.