These are examples of relative paths and the stored path in the designer.cs file (reports/reportStyles.xml) is also relative. It will be calculated as absolute based on the URL of your application.
About your second issue, we are aware of it and the fix will be provided in a future release.
Let us know if you have any further questions.
the Telerik team
HAPPY WITH REPORTING? Do you feel that it is fantastic? Or easy to use? Or better than Crystal Reports? Tell the world, and help fellow developers! Write a short review about Telerik Reporting and Telerik Report Designer in Visual Studio Gallery today!