I tried to reproduce the issue using your markup - but without success.
What do you mean by "not working when we are using IE 8"? Do you receive any error message?
What happens if you uncheck the "Display intranet sites in Compatibility View" checkbox in IE8 menu (it is located in Tools -> Compatibility View Settings)?
the Telerik team
Do you want to have your say when we set our development plans?
Do you want to know when a feature you care about is added or when a bug fixed?
Telerik Public Issue Tracking
system and vote to affect the priority of the items