Hi Jay O'Brien,
The images pasted / inserted in RadEditor should be accessible via the HTTP protocol and they must be uploaded on the server.
The automatic image upload cannot be implemented without using ActiveX or some other software, installed on the client, but we do not use either technique because of browser compatibility and that the ActiveX components are forbidden by the corporate networks.
What we suggest is to paste the screenshot in MS Paint or another similar program, save it to your hard disk and manually upload the saved image via the Upload functionality of the RadEditor's Image Manager dialog. After that you will be able to insert the image into the content area of RadEditor.
All the best,
the Telerik team
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