The cell's VerticalContentAlignment property is set to Center by default. In order to show the text when wrapping is applied, you need to set the property to Top by using cell style. I can only suggest you to customize the cell template so you can achieve the desired look.
As for the issue with TextWrapping set to NoWrap and TextTrimming set to WordEllipsis, I was not able to reproduce it using the latest official version - Q3 2012.
the Telerik team