Telerik UI tests don't work from Visual Studio/MTM

Hi, 

We are trying to run our Telerik UI tests from Visual Studio and getting the below error.

Result
Message:        

------------------------------------------------------------

'12/1/2014
3:55:25 PM' - Executing test: 'BingTest', path: 'BingTest.tstest.'

'12/1/2014
3:55:25 PM' - Using .Net Runtime version: '4.0.30319.34014' for test execution.
Build version is '2014.3.903.0'.

'12/1/2014
3:55:25 PM' - Starting execution....

'12/1/2014
3:56:26 PM' - Failure detected during execution. Details:

------------------------------------------------------------

'12/1/2014
3:56:26 PM' - System.TimeoutException: Wait for condition has timed out

   at
ArtOfTest.Common.WaitSync.CheckResult(WaitSync wait, String extraExceptionInfo,
Object target)

   at
ArtOfTest.Common.WaitSync.For[T](Predicate`1 predicate, T target, Boolean
invertCondition, Int32 timeout, WaitResultType errorResultType)

   at
ArtOfTest.Common.WaitSync.For[T](Predicate`1 predicate, T target, Boolean
invertCondition, Int32 timeout)

   at
ArtOfTest.WebAii.Core.Manager.WaitForBrowserToConnect(Int32
browserIndexToWaitFor)

   at
ArtOfTest.WebAii.Core.Manager.LaunchNewBrowser(BrowserType browserToLaunch,
Boolean waitForBrowserToConnect, ProcessWindowStyle windowStyle, String
arguments)

   at
ArtOfTest.WebAii.Design.Execution.ExecutionEngine.InitializeWeb(ExecutionEngineCreateParams
initParams)

   at
ArtOfTest.WebAii.Design.Execution.TestExecuteProxy.CreateAndInitializeEngine(Test
test, ExecutionEngineCreateParams cp)

   at
ArtOfTest.WebAii.Design.Execution.TestExecuteProxy.ExecuteTest(ExecuteTestCommand
command)

------------------------------------------------------------

'12/1/2014
3:56:26 PM' - Test completed!



The test has just 2 steps.

Navigate to 'http://bing.com'
Verify 'TextContent'
'Contains' 'Make Bing my homepage' on 'DhpLink' 

When I run the test, Internet explorer opens, but it times out and doesn't even navigate to bing when executed from Visual studio or MTM. On the other hand, it works perfectly from Telerik Test Studio.  

We get the same error even running our other test scripts. Please could you help us resolve this issue?

Thanks,
Niharika