I am sorry to hear you're running into this problem. I'm not able to reproduce the issue with our latest internal build 2012.2.1527. Could you please try to upgrade to that build and see if the issue persists? You can download it from your Telerik.com account.
Also please ensure you are running Visual Studio as administrator and the User Account Control is set to Never notify
as seen in the screenshot. You also need to make sure your browser is configured according our documentation
If you continue to have difficulty, please provide the error log for analysis.
All the best,
the Telerik team