If you're already using TFS in-house it makes a lot more sense to use the Microsoft toolset for ALM and issue tracking (although I'd look at upgrading to 2013 - TFS management has been made a lot easier compared to 2010, and builds the testing side into the web interface)
That said, Microsoft Test Manager is (in my view) more geared to manual testing although it can be used to manage automation. MTM doesn't run without TFS, and I can't speak to its ability to manage virtual machines used to run automation because I haven't worked with that side of the application.
If you go with TFS and MTM, you'll have the benefit of cross-linking your developer code checkins through to test plans authored in MTM (which adds a lot of traceability) and developers will be able to link test items to specific code routines that exercise them (which is particularly handy for unit tests).
For automation, Microsoft's CodedUI doesn't match the way I prefer to operate all that well, and it does require a decent level of coding knowledge - but it is a powerful tool that is available in Visual Studio Premium and higher licenses (the same license level that includes Microsoft Test Manager).
You'd have the same or greater learning curve with HP QC/QTP and as Bruce said likely face issues with your developers not wanting to change from a product they're comfortable with.
Another benefit of TFS/VS/MTM that's in the later versions (I'm working with 2012) is that work item management can happen via the TFS web portal, through Visual Studio, or through MTM. Each location has its quirks, of course, but I've found I can do most of what I need in all three places - if I'm doing manual tests in MTM and run into a bug, I create it right there, in MTM. If I find a bug when I'm working on automation in Visual Studio, I create the bug from Visual Studio. Integration is as easy as giving the URL of the TFS server.
If you'd like some more information about what TFS can do, I'd suggest taking a look at Channel9's recordings of recent TechEd sessions (fair warning - there's a ton of these, each running about an hour, and you'll probably find a lot of them are useful)
Ritual disclaimer: I do not work for Microsoft. I'm not being paid to blow their horn. I just use their products because that's what the developers use.