I just added some videos to the support ticket for you Telerik.
We have run all browsers and get various results.
IE8 - Issue
IE8 (compat. mode) - Issue but not as big a hesitation between characters
IE9 (standard) - Issue
IE9 (compat. mode) - Issue but not as big a hesitation between characters
Chrome 12.0.742.122 - NO Issue
FireFox 5 - NO Issue
Opera 11.50 - NO Issue
Safari 5.0.5 - NO Issue
If Telerik is willing to sign an NDA we can give you access to the code & DB via VPN - as last resort.
We have tried several different ways to reproduce this issue outside of the current project structure without success.