I was looking to do the same thing recently. I found that several of the Javascript/jQuery scripts online wouldn't work as Telerik doesn't use the standard select element for their drop downs. However, I did find that it was easy enough to do manually. I got it to work by using the following code.
returnnewJsonResult { Data = GetDependantListData(itemId) };
}
I would like to create a jQuery plugin script that would handle this for me (ie attaching events, modifying query, etc) but I haven't had the time/need to do so as of yet.