I tried the example provided at:
http://www.telerik.com/community/code-library/aspnet-ajax/grid/setting-100-height-and-resize-on-container-resize-for-grid-with-scrolling-and-static-headers.aspx
And it resizes properly in FF and IE. The included Dll version is 2008.1
If I replace the Dll with version 2009.1 then the resize fails on IE 7. If I expand the window, it resizes properly, but if I reduce the window size, it does not resize properly. The grid remains bigger than the window area.
Both versions work properly on FF.
Thanks.