I'm facing the same problem and Sung I tried the solution you posted and did not work for me. So what we did is, we wrote a client side event for the cell click handler for this grid and if the column key is the hyperlink column then we are doing EndEdit of Row Edit Template ( basically to close the template)  if the Row Template is already open.And now our hyperlink is working. But this causes a flicker to the user like the row template gets opened & closed.

Waiting for an Efficient Solution    !!

When clicking on a link it should navigate regardless.  The specification of No for AllowUpdate on the column was to keep the template from opening when clicking on the cell region around the link.  I tried it out using 8.1 in a simple sample and did not seem to have any issues.  Here is my column definition:

<Columns>

<igtbl:UltraGridColumn BaseColumnName="col0" Key="col0">

</igtbl:UltraGridColumn>

Type="HyperLink">

<Header>

<RowLayoutColumnInfo OriginX="1" />

</Header>

<Footer>

<RowLayoutColumnInfo OriginX="1" />

</Footer>

</igtbl:UltraGridColumn>

</Columns>

and the data im binding to:

dt.Columns.Add("col0");

dt.Rows.Add("1", @"http://www.google.com");

this.UltraWebGrid1.DataSource = dt;

this.UltraWebGrid1.DataBind();

I tested with both CellClickActionDefault set to Edit and CellSelect and and of course i have UltraWebGrid1.DisplayLayout.AllowUpdateDefault set to RowTemplateOnly.

You should be able to see the differences between yours and mine that may be causing the behavior you mention.

 It seems to me, that the problem occurswhen the columns are added programatically. The AllowUpdate = No seems to have no effect at all, when the column is added dynamic. It still fires the RowEditTemplate. Can you reproduce this behavior?