The Team Foundation Copy Work Item(s) action allows you to create duplicates of one or more Work Items. You can specify fields to edit in the copied item(s).
Work Item Property Page
Use this tab to select the Work Item(s) to copy. See the Team Foundation Work Items overview topic.
Field Values Property Page
Use this tab to select values to write into fields of the duplicate work item(s). See the Team Foundation Work Items overview topic.
"Copy the work item with a different parent project and/or work item type"
Use this option to copy a Work Item between projects, and/or to convert a copied work item to a different type. If this box is checked, you will need to enter both the Project and Work Item Type into the fields below.