Thanks for you response. I had problem building this Application as it cannot find the reference of two DLLs. (System.Xaml and Microsoft.CSharp )
Also I tried to make another application (WpfApplication2.zip) and copied this code and removed the System.Xaml and Microsoft.CSharp reference. But it failed with the following exception:-
'/Telerik.Windows.Controls.Navigation;component/themes/vista/CarouselDataFieldPresenter.xaml' value cannot be assigned to property 'Source' of object 'System.Windows.ResourceDictionary'. Object reference not set to an instance of an object. Error at object 'System.Windows.ResourceDictionary' in markup file 'Telerik.Windows.Controls.Navigation;component/Themes/GenericVista.xaml'.
Can you please let me know the Version of the Binaries that you are using? It would be great if you help me out with this issue.