On the aspx side, you could try adding
ItemStyle-Height="100" AlternatingItemStyle-Height="100"to your Radgrid header declaration.
I was however able to get the height of my rows to change via the below method (VB). Perhaps your code logic was never being hit as well?
myRadgrid.MasterTableView.ItemStyle.Height = 100myRadgrid.MasterTableView.AlternatingItemStyle.Height = 100