I reviewed your project and found out what is causing the problem. Here is what happens under the hood. When LoadOnDemand is set and RadListBox is tried to be bound without datasource an exception is thrown. In your case the when the ListView is bound every item is trying to bind its templates and the RadListBox control throws an exception, that is why you can not bind the RadListView on PageLoad.
To avoid that behavior you need to set EnableLoadOnDemand to true in the itemDataBound event handler.
I changed your project and sending it as an attachment. Keep in mind that the LoadOnDemand of the RadListBox control works only when the ListBox is bind on the first page load.
I am going to improve the RadListBox to render empty RadListBox when the control is bind to an empty datasource.
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