RE: Team Coding 7 in Toad 11.6.1 with TFS - "Check in all objects locked by you" checks one by one item?!
I have confirmed this is behavior in Toad 11.6. It is bringing up the SCC Check in Dialog for each ‘Check in’ when using the SCC: MSCCI Provider for Microsoft Team Foundation Sever. It behaves correctly when using the Toad implementation for TFS, which I understand will not work in your case.
I have added to my bug list, which means I will try to get it in to the next beta build.