I would like to implement an outlook style panel bar similar to what is implemented in the Telerik ASP.NET Ajax Panel Bar demo here: 
http://demos.telerik.com/aspnet-ajax/panelbar/examples/applicationscenarios/outlooknavigation/defaultcs.aspx 

Is this possible with the KendoUI panel bar?

Hello David,

Yes, it is possible, you need to override the PanelBar styles. For example, the root k-link elements' border color should be #002d96. Their background color can can be #3769a1. If you want a glossy background, you will need to replace the semi-transparent gray background image with another one.

If you need more information and assistance with this, please use a support ticket.

All the best,
Dimo
the Telerik team

I was looking more for the behavior that is implemented in outlook.  I don't want the items to move around when I click on them.  I want the items to stay at the bottom of the screen and just highlight the item that is currently selected.

I ended up implemented this behavior using a Menu and just toggling what is visible when a menu item is clicked.