Could your please what is this 'sample code' that you are talking about? In addition the provided code snippet is tested with the latest version of RadControls for ASP.NET AJAX - 2009.1.402.35. The other version that you mentioned (2008.2.1001.35) is pretty old, so the sample code might not work with it.
I think it will be best if you can open a support ticket and send us a simple running project (incl. CSS, images, skins, DB backup if needed and so on) demonstrating the problem (and step-by-step instructions on doing so). In that way we can reproduce and pinpoint the problems you're facing on our side, understand the logic of your application and provide a solution.
Thanks beforehand for your patience and cooperation,
the Telerik team