Hi Scott :)
Don't to be so resentful :)... Telerik guys is really one of the best support team I ever met. I tried to ask several other companies about their products - this is as really sh.. :(
The true of end of this story is that in this case I must find solution myself. After end I found, that in time of publish project (VS2010) is not published some library. Here is list of them:
Remember - first two of them is really useful library in your deploy directory. Without them (Microsoft.WindowsAzure.ServiceRuntime.dll, Telerik.OpenAccess.MySql.Data.dll) you will cry rage everytime... Don't know what other is for... You can get them from BIN directory where is you project.
One more help for to start project is, to copy "DataConfig.config" file to deploy (Configuration\DataConfig.config) directory. Other way is to make new cofiguration in time of starting web site.
Hope it will be help full for you.
Tested in current verison - 4.4.2117.0
And one more question for Victor - why when I open new project (in VS2010) then in references is missing library : Telerik.OpenAccess.Adonet2... ??