The changes are to the get_text() and set_text() methods in the Telerik.Web.UI.Spell.HtmlElementTextSource object in the RadSpell.js file. The change is to add one line to encode < to < when getting the text and from < back to < when setting the text in the textbox:
text = text.replace(/</g,
text = text.replace(/<rslt\/></gi,
//... set text
The fix will be included in the next official release as well as the next RadControls for ASP.NET AJAX internal build (http://www.telerik.com/account/latest-internal-builds.aspx
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