Currently, the Image property of RadImageEditor is not a dependency property so you cannot bind to it. If you need to use MVVM, then you can wrap RadImageEditor in your own custom control and expose a dependency property that is synchronised as your scenario dictates.
Setting default image can currently be done by assigning a RadBitmap (which can be instantiated in a number of ways) to the Image property of the RadImageEditor.
the Telerik team
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