I tried to replicate the described problem but to no avail. Please examine the attached sample project and let me know if you manage to reproduce what you are getting in this project, and what steps to follow, so that we can test it too.
the Telerik team
Registration for Q1 2011 What’s New Webinar Week is now open. Mark your calendar for the week starting March 21st and book your seat
for a walk through all the exciting stuff we ship with the new release!