The Application example is referencing some files which are located in the examples/content/ folder. However desktop WebKit browsers have a restriction and are not able to load files with Ajax from the file system when the original file is also opened from the file system. To be able to load these files and see the example in action, you should create a web site on your server with the zip content as the site root folder and open the application demo from the server.
All the best,
the Telerik team
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