Recently I needed to get builds running in Visual Studio Online (VSO) that contained Team Development for Sitecore (TDS) projects. Since I cannot install the TDS software on the VSO build server, I needed another way to get these projects to compile with a VSO build definition.
The following blog post has very detailed instructions on how to change your TDS project to use Hedgehog DLLs and a license file within your source control and helped immensely:
The referenced post indicates that you should update a file named TDSLicence.config in order to provide your TDS licence key. This file does not exist by default, so you will need to create it. The file name is important! I accidentally created the file with the American spelling ‘TDSLicense.config’ and the build server was unable to validate the file. Hedgehog support helped me out by pointing out my typo, but also explained that version 5.1 and up will support both spelling variations.