I'm having a very similar problem in Medium Trust. I generate XML in business logic and load it into the RadMenu with:
RadMenu.LoadXML(BusinessObject.ToXmlMenuDataSource())
This works perfectly in Full Trust on my development system, but on the live server (which runs at Medium Trust) it generates anchor tags with the attribute:
href="#"
All of the other properties are set correctly on both the live and development servers, including the text, the access key, and the target (target="_top", target="_blank").
Please help, this is a show-stopper for my project.
Just as a side note, I'll be very careful about choosing web hosts in the future. Running at Medium Trust has caused me considerable headaches. Other than that, the Telerik controls have been an enormous blessing to my work!
Thanks -
Brad