Are you using Asp.Net Ajax in VS.Net 2005? If so, the grid may conflict with some ajax framework. You may try to add a config setting to the web.config file. Be sure that the client files(images, scripts) are correctlly installed at the URL path "/agw_client/" in your installable folder. This config prevent the control from using embeded client resource(images, scripts, etc.). But this config will only take effect with LICENSED controls.
Please write the following lines in the web.config file. These settings will work for Asp.net AJAX.
This problem is most possibly caused by using FILE mode website of vs 2005. You may try Amjad's suggestion, but that config settings requires licening the control first. You may also try to use HTTP mode website. Please check the following link to get more information: