I'm afraid that this is a bug in IE7 regarding stack order of elements on the page as it's explained here.
You should remove "position: absolute" css rule from the following elements in order to work-around it:
- element with id="loadWindow";
- element with class="CenterPage";
- the table inside element with id="menuDiv".
I hope this helps.
the Telerik team
Do you want to have your say when we set our development plans?
Do you want to know when a feature you care about is added or when a bug fixed?
Telerik Public Issue Tracking
system and vote to affect the priority of the items.