This is the bug: http://screencast.com/t/djgiG4OBa
Kendo.all.js focusTable function is the beginning of the problem. We worked through
from there to identify where the problem is Lines :62024-62026
We commented these lines out and then the bug been fixed.
// table.focus(); //because preventDefault bellow, IE cannot focus the table alternative is unselectable=on
Hope this feedback can make your product better.