Arun,
Thanks for your response.
I did some further testing and I noticed that when I run the installed sample executables they work fine. It is only after I haved compiled the examples myself that the problem occurs. I am using the Syncfusion pre-built Release DLLs (2.0.2.1) when I build. I am also using .NET Framework v1.1.
Below is the zip file containing my compiled version of the XPMenusMDI sample...
XPMenusMDI_5537.zip