I have implemented all of Todd's code and updated the template references as indicated and I still get a blank white space where the control is being rendered in Sharepoint. If I take the same code and put it in a standard web site, the code renders fine.
See article reference: http://blogs.telerik.com/stoyanstratev/posts/08-08-20/radrotator_for_asp_net_ajax_using_dynamic_templates.aspx
I am using Visual Studio Extensions for Windows Sharepoint Services. I have other web parts deployed using the RadGrid and RadChart controls and they work just fine.