Here are the system requirements: http://www.telerik.com/aspnet-ajax/tech-sheets/system-requirements.
Essentially, you need MS AJAX installed as an addition to .NET 4. It usually comes with the VS installation. You can test if it is available by deploying a small test site that has only a script manager, asp:UpdatePanel and a button inside. If this works fine (no script errors, no broken requests, no server errors, partial postbacks being performed), then deploying the app with our controls should work just fine. You would only need to make sure the referenced assemblies are copied over too (in case of BIN deployment) or that our assemblies are added to the GAC (in case you reference them from the GAC in the project).
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