I've just answered your support ticket regarding the same problem. Please find below my answer:
Could you please try the attached project at your side? If it works - could you please modify it so I can see the problem locally?
I noticed the version you use is 2011.3.1115.35, did you try our the latest version - 2012.2.724?".
To avoid duplication, please let us continue our communication in a single thread.
the Telerik team
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