I'm not sure if this is a bug as I didn't have time to properly investigate. I used the upgrade wizard to download the latest version (q1 2010). It found the new version, downloaded, and extracted. The problem was Q1 2010 wasn't listed as one of the version choices to upgrade to. If you don't want to download it again, the files are downloaded and extracted to %appdata%\Telerik\Updates. I just hit browse in the select version screen. The upgrade wizard has always worked better for me (seems to manage the vs toolbox better) so I was glad to get this working. Hope this helps others.