Sorry for the trouble with the video seeking. We definitely understand your desire to skip through videos and we're actively working on the next generation player and video delivery system for Telerik TV. Soon, videos will be available in a Silverlight RadMediaPlayer and will be delivered with IIS Smooth Streaming, enabling near instant playback and seeking.
If you'd like a sneak peek, you can try this URL: http://tv.telerik.com/watch/telerik/whats-new-q2-2010?beta=1
This URL is only an early test and preview, so it may be unavailable in the future, but for now it should give you a glimpse of what were working on.