Using Microsoft Test Manager, Visual Studio 2010, and TFS 2010 can improve software quality through a 7 step approach: 1) Work management, 2) Defining what "done" means, 3) Automated builds, 4) Manual and automated testing tools, 5) Developer quality tools, 6) Lab management, and 7) Working smart. These tools provide an integrated environment for managing work, automating builds, facilitating manual and automated testing, and providing virtual test environments to improve efficiency and quality.