I understand the issue is with the dialog, but did you make the change I suggested for the step before? The Download dialog in my test was not acted on properly until I made that change.
If you continue to have difficulty, please attach your test files (in zip file format) that demonstrate the issue on a public site.
the Telerik team
for a live 'What's New in Test Studio R1 2011 SP2' event on Tuesday, July 19 at 2pm EST!
Have you looked at the new Online User Guide
for Telerik Test Studio?