Telerik RadAjax supports two kinds of redirection:
Response.Redirect() - The standard ASP.NET means of redirection.
Currently there is a security issue that prevents Response.Redirect with AJAX from working in Windows Server 2008. IIS 7 simply does not allow catching the Application events. You should be able to use the RadAjaxManager.Redirect method instead.
Example 1: Using RadAjaxManager and RadAjaxPanel Redirect()