I just recorded and successfully executed a Modal Pop-up test with IE9 on this site. Connect to and Close modal pop-up window steps were properly recorded. The only change I had to make was to disable the Close modal pop-up window step, since the ClosesBrowser property is set to True for the preceding step (Click Button). This tells Test Studio that the Click Button step will close the pop-up, so the Close pop-up step is not needed.
If there's a public site that demonstrates the issue you're having, please pass that along with reproduction steps.
the Telerik team
Do you want to have your say when we set our development plans?
Do you want to know when a feature you care about is added or when a bug fixed?
Telerik Public Issue Tracking
system and vote to affect the priority of the items