After looking at the 3.5 config sample included in the RadControlsExample solution, I noticed that my project(MVC) did not contain the following config section. To be honest, I've never even seen this used in my 7+ of .Net development...learn something everyday.
</system.web>
<runtime>
<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
<dependentAssembly>
<assemblyIdentity name="System.Web.Extensions" publicKeyToken="31bf3856ad364e35" />
<bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="3.5.0.0" />
</dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="System.Web.Extensions.Design" publicKeyToken="31bf3856ad364e35" />
<bindingRedirect oldVersion="1.0.0.0-1.1.0.0" newVersion="3.5.0.0" />
</dependentAssembly>
</assemblyBinding>
</runtime>