We are not quite sure what's the exact problem on your side, but it seems you either using old version of the assembly along with the latest skins or there's some external (custom) CSS styles applied on your page that affect the menu appearance. I think it will be best if you can provide a live URL or open a support ticket and send us a simple running project (incl. your custom skin, CSS, images, DB backup if needed and so on) demonstrating the problem (and step-by-step instructions on doing so). In that way we can reproduce and pinpoint the problems you're facing on our side, understand the logic of your application and provide a solution.
BTW, you didn't say how the provided application runs on your side (as it definitely works on our side exactly as you have described).
the Telerik team