Hi,
Please make sure your Grid's RunningMode property is set to "Client". You can't add item with JavaScript when the Grid is in Server or Callback running mode.
All the following code is wrong:
item.setValue = "set";
It should be something like this:
item.getCell(0).setValue("anything");
setValue is a method. So you must call it with (). Also there is no value per item. Values are associated to each cell.
A full working sample is available here:
http://demo.essentialobjects.com/Default.aspx?path=Grid\_i1\_i8You can take a look of/copy the source code from there.
Thanks!