Hi, I have tested your code and it works es expected. I have increased drastically margin/padding values and it was respected by the wrapping div, which has now bigger padding and margins. Attached is rotator.gif showing the result in the browser and FireBug showing padding and margin respected. I have tested with the following code:
If you want to get updates on new releases, tips and tricks and sneak peeks at our product labs directly from the developers working on the RadControls for ASP.NET AJAX, subscribe to their blog feed now.