Style does work inside DataTemplate

[YYZRichard]

I'm trying to apply a style to an image inside a DataTemplate, but it doesn't seem to work. It works fine if the style is applied to an image outside the RadGridView.

Here's the xaml for the RadGridView, and I'm refering to Style="{StaticResource ico16}" in the code below:

<telerik:RadGridView Grid.Column="1"
                     Grid.Row="1"
                     AutoGenerateColumns="False"
                     DataContext="{Binding Grid}"
                     ItemsSource="{Binding XPath=/Collection}"
                     RowIndicatorVisibility="Collapsed"
                     ShowGroupPanel="False"
                     GridLinesVisibility="Horizontal"
                     telerik:StyleManager.Theme="Windows7">
    <telerik:RadGridView.Columns>
        <telerik:GridViewDataColumn Width="*">
            <telerik:GridViewDataColumn.CellTemplate>
                <DataTemplate>
                    <StackPanel Orientation="Horizontal" VerticalAlignment="Top" >
                        <Image Source="{Binding XPath=@Icon}" ToolTip="{Binding XPath=@Tooltip}" Style="{StaticResource ico16}" />
                        <TextBlock Text="{Binding XPath=@Key}" Foreground="Black" />
                    </StackPanel>
                </DataTemplate>
            </telerik:GridViewDataColumn.CellTemplate>
        </telerik:GridViewDataColumn>
    </telerik:RadGridView.Columns>
</telerik:RadGridView>

On the same VIEW where the code above resides, there's a link to a resource dictionary where the style is defined:

<UserControl.Resources>
    <ResourceDictionary>
        <ResourceDictionary.MergedDictionaries>
            <ResourceDictionary Source="pack://application:,,,/MyAssemblyNameHere;component/Resources/MyResourceDictionary.xaml" />
        </ResourceDictionary.MergedDictionaries>
    </ResourceDictionary>
</UserControl.Resources>

The style is defined on a ResourceDictionary as follows:

<ResourceDictionary xmlns="http://schemas.microsoft.com/winfx/2006/xaml/presentation"
                    xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml">

    <Style x:Key="ico16" TargetType="Image">
        <Setter Property="Margin" Value="0 0 5 0" />
        <Setter Property="Width" Value="16"/>
        <Setter Property="Height" Value="16"/>
        <Setter Property="RenderOptions.BitmapScalingMode" Value="HighQuality"/>
        <Setter Property="Stretch" Value="UniformToFill"/>
        <Setter Property="VerticalAlignment" Value="Top"/>
        <Setter Property="HorizontalAlignment" Value="Left"/>
    </Style>

</ResourceDictionary>

Any help is greatly appreciated.

[YYZRichard]

I just realized the issue is not related to the STYLE.
I set all the properties for the image instead of using STYLE, and found out that only the property below is not working as expected inside a DataTemplate. It works fine when placed outside the RadGridView.

RenderOptions.BitmapScalingMode="HighQuality"