From the console I get this error when using the radmenu onitemclick: Sys.WebForms.PageRequestManagerServerErrorException, ... "PRM_UnknownToken":"Unknown token: \u0027{0}\u0027.","PRM_MissingPanel":"Could not find UpdatePanel with ID \u0027{0}\u0027. While the controls to appear and seem to work they do not call my onitemclick event and instead generate the error.
The code works fine when running from the developer or IIS manager. I noticed IIS added the app pool name to the path so using http://localhost:86/SR05C works but not just using the web reference without specifying the pool, ie localhost:86 brings up the site and the controls but the code behind the Telerik controls do not.. Same problem when I tried to deploy to a godaddy server. I tried without AJAX with the same result.