I was able to reproduce the described behavior and recognize it as a problem in the RadFileExplorer control. The problem is caused by the fact that the changes, made in the ExplorerPopulated event handler, are not properly applied to the Grid control. I have fixed this, however, in the code of the control and the changes will be available in the upcoming BETA release of the RadControls for ASP.NET AJAX, scheduled for the end of this month.
Thank you for bringing this problem to our attention. Your Telerik points were updated.
All the best,
the Telerik team
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