Which version of VS are you using? What happens if you create a new Telerik Test Studio project and try to record a simple test, does that work? If you find that the Test Studio plug-in will no longer load (VS can disable loading it if it thinks it has caused a crash) you can reset this flag using Reset Skipped Packages. This won't fix VS hangs however.
If the problem really is specific to that one test project it may be caused by a specific test. A way to identify which one is to use Windows Explorer to manually move all of the tests out of the folder to some temp folder and try to load the test project in VS. Add a few (or one) test back at a time until VS can no longer load the project. Once you've identified the test causing a hang you have a few options:
1) Delete and recreate that test from scratch
2) Send it to us for analysis. if there's a test that causes our plug-in to hang we'd like to find the cause and fix the problem in Test Studio.
All the best,
the Telerik team