Hello Chris Jones,
This is the expected behavior. The Loaded event will fire every time BringToFront for w1 is called. Exactly that happens when you close the modal w2. This is made in order to workaround a limitation of Silverlight. If you want to execute some code only when the RadWindow is created you should use the Opened event.
Hope that will suit your needs. If it does not work for you please let me know.
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