Does the Telerik PropertyGrid control not support the FolderNameEditor? The control is showing a textbox and not the ellipsis button that displays a dialog.
By default, for string values PropertyGridTextBoxEditor is activated. However, if you need to select a folder, it is suitable to use the PropertyGridBrowseEditor. Here is a sample code snippet demonstrating how to handle the EditorRequired and replace the default editor:
public RadForm1()
{
InitializeComponent();
PropertyStoreItem intItem = new PropertyStoreItem(typeof(int), "Integer", 1);
PropertyStoreItem stringItem = new PropertyStoreItem(typeof(string), "FolderName", @"D:\Projects");