I have setup my editor as follows but on switching design html it changes the paths to http://localhost/
<telerik:RadEditor ID="txtcontent" EditModes="Design, Html" OnClientInit="OnClientInitFilter"
ContentFilters="FixUlBoldItalic, FixEnclosingP, IECleanAnchors, MozEmStrong, ConvertFontToSpan, ConvertToXhtml, IndentHTMLContent, EncodeScripts, OptimizeSpans, ConvertCharactersToEntities"
ToolsFile="~/Account/ToolsFile.xml" Runat="server" >
<CssFiles >
<telerik:EditorCssFile Value="EditorContentArea.css" />
</CssFiles>
<ImageManager ViewPaths="~/Img" UploadPaths="~/Img" DeletePaths="~/Img" />
</telerik:RadEditor>
latest demo version of controls is being used.
<telerik:RadEditor ID="txtcontent" EditModes="Design, Html" OnClientInit="OnClientInitFilter"
ContentFilters="FixUlBoldItalic, FixEnclosingP, IECleanAnchors, MozEmStrong, ConvertFontToSpan, ConvertToXhtml, IndentHTMLContent, EncodeScripts, OptimizeSpans, ConvertCharactersToEntities"
ToolsFile="~/Account/ToolsFile.xml" Runat="server" >
<CssFiles >
<telerik:EditorCssFile Value="EditorContentArea.css" />
</CssFiles>
<ImageManager ViewPaths="~/Img" UploadPaths="~/Img" DeletePaths="~/Img" />
</telerik:RadEditor>
latest demo version of controls is being used.