We are aware of such a behavior in IE browsers. It is caused by the filters, used in IE in order to animate elements and it is a know problem of such browsers (you can observe some of the side effects in the attached project to this Code Libarary
. The project contains HTML elements only). Playing around with this behavior, we found that setting some margin around the images fixes the problem. Please note that, you need to take into account the margin when you set the ItemWidth and Itemheight properties, based on the instructions provided in this help page
I hope this helps.
the Telerik team
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