We are useing that magical template part "layoutTransform" that should be a LayoutTransformControl to set up rotation. If your items' ControlTemplate have no such part you will lose the rotation of the RadCoverFlow's children.
xmlns:animation="clr-namespace:Telerik.Windows.Controls.Animation;assembly=Telerik.Windows.Controls"
xmlns:telerikTransitions="clr-namespace:Telerik.Windows.Controls.TransitionEffects;assembly=Telerik.Windows.Controls"
xmlns:telerikChromes="clr-namespace:Telerik.Windows.Controls.Chromes;assembly=Telerik.Windows.Controls"
xmlns:telerik="clr-namespace:Telerik.Windows.Controls;assembly=Telerik.Windows.Controls"
xmlns:telerikNavigation="clr-namespace:Telerik.Windows.Controls;assembly=Telerik.Windows.Controls.Navigation"
xmlns:telerikNavigationPrimitives="clr-namespace:Telerik.Windows.Controls.Primitives;assembly=Telerik.Windows.Controls.Navigation"
xmlns:telerikPrimitives="clr-namespace:Telerik.Windows.Controls.Primitives;assembly=Telerik.Windows.Controls"
xmlns:telerikToolBar="clr-namespace:Telerik.Windows.Controls.ToolBar;assembly=Telerik.Windows.Controls.Navigation"
xmlns:vsm="clr-namespace:System.Windows;assembly=System.Windows"
xmlns:mscorlib="clr-namespace:System;assembly=mscorlib"
xmlns:dragDrop="clr-namespace:Telerik.Windows.Controls.DragDrop;assembly=Telerik.Windows.Controls"
xmlns:animationNavigation="clr-namespace:Telerik.Windows.Controls.Animation;assembly=Telerik.Windows.Controls.Navigation"
xmlns:treeView="clr-namespace:Telerik.Windows.Controls.TreeView;assembly=Telerik.Windows.Controls.Navigation"
xmlns:telerikTabControl="clr-namespace:Telerik.Windows.Controls.TabControl;assembly=Telerik.Windows.Controls.Navigation"
xmlns:book="clr-namespace:Telerik.Windows.Controls.Book;assembly=Telerik.Windows.Controls.Navigation"
xmlns:outlookBarPrimitives="clr-namespace:Telerik.Windows.Controls.OutlookBar;assembly=Telerik.Windows.Controls.Navigation"
xmlns:primitives="clr-namespace:System.Windows.Controls.Primitives;assembly=System.Windows"
xmlns:sys="clr-namespace:System;assembly=mscorlib"
xmlns:Telerik_Windows_Controls_TileView="clr-namespace:Telerik.Windows.Controls.TileView;assembly=Telerik.Windows.Controls.Navigation"
xmlns:telerikBreadcrumb="clr-namespace:Telerik.Windows.Controls.Breadcrumb;assembly=Telerik.Windows.Controls.Navigation"
>
<SolidColorBrush x:Key="DisabledBrush" Color="#99FFFFFF"></SolidColorBrush>
<Style TargetType="telerikNavigation:RadCoverFlow">
<Setter Property="Background" Value="Transparent" />
<Setter Property="IsTabStop" Value="False" />
<Setter Property="TabNavigation" Value="Once" />
<Setter Property="ItemsPanel">
<Setter.Value>
<ItemsPanelTemplate>
<telerikNavigation:CoverFlowPanel />
</ItemsPanelTemplate>
</Setter.Value>
</Setter>
<Setter Property="Template">
<Setter.Value>
<ControlTemplate TargetType="telerikNavigation:RadCoverFlow">
<Grid>
<VisualStateManager.VisualStateGroups>
<VisualStateGroup x:Name="CommonStateGroup">
<VisualState x:Name="Disabled">
<Storyboard>
<ObjectAnimationUsingKeyFrames
Storyboard.TargetName="DisabledBox"
Storyboard.TargetProperty="Visibility" Duration="0">
<DiscreteObjectKeyFrame KeyTime="0" Value="Visible" />
</ObjectAnimationUsingKeyFrames>
</Storyboard>
</VisualState>
<VisualState x:Name="Normal" />
</VisualStateGroup>
</VisualStateManager.VisualStateGroups>
<Border Background="{TemplateBinding Background}"
BorderBrush="{TemplateBinding BorderBrush}"
BorderThickness="{TemplateBinding BorderThickness}">
<telerikPrimitives:LayoutTransformControl x:Name="layoutTransform">
<ItemsPresenter Margin="{TemplateBinding Padding}" />
</telerikPrimitives:LayoutTransformControl>
</Border>
<Rectangle x:Name="DisabledBox" Fill="{StaticResource DisabledBrush}"
Visibility="Collapsed" />
</Grid>
</ControlTemplate>
</Setter.Value>
</Setter>
</Style>
<Style TargetType="telerikNavigation:RadCoverFlowItem">
<Setter Property="Template">
<Setter.Value>
<ControlTemplate TargetType="telerikNavigation:RadCoverFlowItem">
<Border Background="{TemplateBinding Background}"
BorderBrush="{TemplateBinding BorderBrush}"
BorderThickness="{TemplateBinding BorderThickness}">
<vsm:VisualStateManager.VisualStateGroups>
<VisualStateGroup x:Name="CommonStates">
<VisualState x:Name="Focused" />
<VisualState x:Name="Disabled">
<Storyboard>
<ObjectAnimationUsingKeyFrames
Storyboard.TargetName="PART_DisabledBox"
Storyboard.TargetProperty="Visibility" Duration="0">
<DiscreteObjectKeyFrame KeyTime="0" Value="Visible" />
</ObjectAnimationUsingKeyFrames>
</Storyboard>
</VisualState>
<VisualState x:Name="MouseOver" />
<VisualState x:Name="Normal" />
</VisualStateGroup>
<VisualStateGroup x:Name="SelectionStates">
<VisualState x:Name="Selected" />
<VisualState x:Name="Unselected">
<Storyboard>
<ObjectAnimationUsingKeyFrames
Storyboard.TargetName="ContentElement"
Storyboard.TargetProperty="IsHitTestVisible"
Duration="0">
<DiscreteObjectKeyFrame KeyTime="0" Value="False" />
</ObjectAnimationUsingKeyFrames>
</Storyboard>
</VisualState>
</VisualStateGroup>
<vsm:VisualStateGroup x:Name="ContentStates">
<vsm:VisualState x:Name="Loaded" />
<vsm:VisualState x:Name="Loading">
<Storyboard>
<ObjectAnimationUsingKeyFrames
Storyboard.TargetName="LoadingVisual"
Storyboard.TargetProperty="Visibility" Duration="0">
<DiscreteObjectKeyFrame KeyTime="0" Value="Visible" />
</ObjectAnimationUsingKeyFrames>
<DoubleAnimation From="0" To="359" Duration="0:0:2"
RepeatBehavior="Forever"
Storyboard.TargetName="LoadingVisualAngleTransform"
Storyboard.TargetProperty="Angle" />
<DoubleAnimation To="0" Duration="0"
Storyboard.TargetName="ContentElement"
Storyboard.TargetProperty="Opacity" />
</Storyboard>
</vsm:VisualState>
<vsm:VisualState x:Name="InvalidContent">
<Storyboard Duration="0">
<ObjectAnimationUsingKeyFrames
Storyboard.TargetName="ErrorElement"
Storyboard.TargetProperty="Visibility">
<DiscreteObjectKeyFrame Value="Visible" KeyTime="0" />
</ObjectAnimationUsingKeyFrames>
</Storyboard>
</vsm:VisualState>
</vsm:VisualStateGroup>
</vsm:VisualStateManager.VisualStateGroups>
<telerikPrimitives:LayoutTransformControl x:Name="layoutTransform">
<Grid Background="Transparent">
<ContentPresenter x:Name="ContentElement"
Content="{TemplateBinding Content}"
ContentTemplate="{TemplateBinding ContentTemplate}" />
<Grid x:Name="LoadingVisual" RenderTransformOrigin="0.5,0.5"
Visibility="Collapsed" VerticalAlignment="Center"
HorizontalAlignment="Center" MaxWidth="50" MaxHeight="50">
<Grid.RenderTransform>
<RotateTransform x:Name="LoadingVisualAngleTransform" Angle="0"
CenterX="0.5" CenterY="0.5" />
</Grid.RenderTransform>
<Path Stretch="UniformToFill"
Stroke="Gray" StrokeThickness="6"
StrokeStartLineCap="Flat" StrokeEndLineCap="Triangle"
Data="M1,0 A1,1,90,1,1,0,-1" HorizontalAlignment="Center"
VerticalAlignment="Center" />
</Grid>
<Image x:Name="ErrorElement" Stretch="None" Visibility="Collapsed"
Source="/Telerik.Windows.Controls.Navigation;component/images/CoverFlowError.png"
HorizontalAlignment="Center" VerticalAlignment="Center" />
<Rectangle x:Name="PART_DisabledBox"
Fill="{StaticResource DisabledBrush}" Visibility="Collapsed" />
</Grid>
</telerikPrimitives:LayoutTransformControl>
</Border>
</ControlTemplate>
</Setter.Value>
</Setter>
<Setter Property="CacheMode">
<Setter.Value>
<BitmapCache />
</Setter.Value>
</Setter>
</Style>
</ResourceDictionary>