Happens in the latest KendoUI release.
You can see it here: http://jsfiddle.net/latenightcoder/RALR3/1/ (Seems like jsfiddle is having some problems getting the http://cdn.kendostatic.com/2012.1.515/styles/kendo.common.min.css file from your CDN even through referenced right but you can still the toolbar position)
Worked as expected in the initial version of KendoUI (v2011.3.1129) : http://jsfiddle.net/latenightcoder/RALR3/2/
You can see it here: http://jsfiddle.net/latenightcoder/RALR3/1/ (Seems like jsfiddle is having some problems getting the http://cdn.kendostatic.com/2012.1.515/styles/kendo.common.min.css file from your CDN even through referenced right but you can still the toolbar position)
Worked as expected in the initial version of KendoUI (v2011.3.1129) : http://jsfiddle.net/latenightcoder/RALR3/2/