Even I am facing the same issue while customizing skin with Q2 2011 trial version. I am using forest as base skin and copied Forest folder from installation folder to themes folder. Then I changed web.config setting to
<add key="Telerik.EnableEmbeddedSkins" value="false" />
<add key="Telerik.Skin" value="Forest" />
My form contains only grid and button. It seems the button style is not getting applied.
Thanks in advance.