If you have installed a trial version (or a licensed version) of RadControls for ASP.NET AJAX including the Visual Studio Extensions for VS 2010, you can simply open VS 2010 and go to the Telerik Menu at top and across to create a new RadControls Web App to provide the shell for porting over the demo.
It adds a reference to the required "Telerik.Web.UI.dll" (and, if you select to use skins other than the default skin -as I do in the video below-it also adds a reference to the "Telerik.Web.UI.Skins.dll" as discussed in this blog post - Separate Skin Assembly in RadControls for ASP.NET AJAX with Q3'11
Then, go to the online demo
and follow the instructions in the Demo Isolation Steps
to copy/paste the relevant sections of the.aspx and .aspx.cs code into your shell application.
I've provided a walk through of porting this demo to VS 2010 in the video:
Hope this helps.