Thank you for the provided application. However I could not reproduce the described issue. On the following link
you could find a video which shows how the example works on my end.
Additionally I saw into the web.config file that the project is build on .NET 4.0, however all references of the Telerik.Web.UI are for .NET 2.0 . Could you please try adding the Telerik.Web.UI for .NET 4.0 and let me know if the issues still exist.
Looking forward for your reply.
the Telerik team