Hi Paul Schmetzer,
It is possible with the current toolbox installer to have similar issues from time to time. That is why we are currently working on a new (and much better) way to install the controls in Visual Studio toolbox, that will most probably be ready in time to be used for the Q2 2009 release.
However, this exact issue that you mention shouldn't have damaged the installation, only the controls will not be available in the Visual Studio toolbox.
You can easily correct that by adding them manually as described in this KB article:
Do not hesitate to write me back if you have further questions.
All the best,
the Telerik team