Tests allow you to refactor with confidence that you are not breaking the system. Writing the tests first allows the tests to define what is working behavior for the system. Any behavior that isn't defined by the test is by definition a by-product and allowed to change when refactoring. Writing tests first also drive the design in good directions. To support testability you find that you need to decouple classes, use interfaces, and follow good pattern (Inversion of Control, for instance) to make your code easily testable. If you write tests afterwards, you can't be sure that you've covered all the behavior expected of your system in the tests. You also find that some things are hard to test because of the design -- since it was likely developed without testing in mind -- and are tempted to skimp on or omit tests.
I generally work solo and mostly do TDD -- the cases where I don't are simply where I fail to live up to my practices or haven't yet found a good way that works for me to do TDD, for example with web interfaces.
