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When the Project configuration wizard gets displayed you must see the latest compatible version of the RadControls for WPF. This means that if you have the latest version of RadControls for WPF for .NET 3.5 installed and you try to create new project that targets .NET 4.0, you won't see this latest distribution.
The easiest way to check if you have installed the RadControls for WPF for .NET 3.5 is to create a new project that targets .NET 3.5 and make sure that the assemblies show up in the Project configuration wizard.
If that's the case you should uninstall the current version and install the correct one. Here is a link to all latest RadControls for WPF resources: http://www.telerik.com/account/your-products/product-versions/single-download.aspx?pmvid=2449&pid=601
Please let me know if you have any further questions.
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