I have inserted an image to telerik editor. And by default, it is setting width and height of image , it is setting those values as attribute not as style="width:__px;height:__px". And while inserting any image with width and height set it inserts image properly ,, but image tag is created like this.
<img src="proper_path_to_image" style="width: NewWidth px; height: NewHeight px; " width="OldWidth" height="OldHeight" align="">
Here is the screencast link : http://screencast.com/t/HARGXm2GtrW3