RadEditor 2.0 is designed to work on Microsoft Office SharePoint Portal Server 2003 or Microsoft Windows SharePoint Services 2.0. Version 2.0 of RadEditor for SharePoint is released years before the official release of SharePoint 2007 and it does not support it.
If you would like to use RadEditor on SharePoint 2007 then you should upgrade at least to RadEditor for MOSS v.4.x which is developed especially for SharePoint Server 2007 (MOSS).
All the best,
the Telerik team
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