Hi Timothy, et al.
Some revisions to the Coolite Toolkit UpdatePanel support is starting to roll into SVN.
Please test if you have an opportunity.
There's still a problem if the UpdatePanels .Update() Method is called server-side.
Calling .Update() sets a private boolean field within the UpdatePanel to instruct an UpdatePanel, that would not have otherwise updated it's content, to switch gears and update it's content. This boolean flag is not accessible outside the UpdatePanel and there's appears to be no other way to determine if .Update() has been called until after the UpdatePanel renders... which I think is too late (or too messy) for us to deal with.
I have a simple idea on how to work-around, although it might involve the developer having to explicitly call a Method on the <ext:ScriptManager> and pass in the UpdatePanel whos .Update() method is being called on. Hope that makes sense.
The *really* disappointing thing is that there's several helpful Properties/Methods within the UpdatePanel that would have made our job much easier and less resource intensive, but they're all either marked as Private, Protected or Internal ... and ... there appears to be no reason to do so. I'm not entirely sure why a read-only property such as "RequiresUpdate" needs to be marked as "protected internal virtual". Why not "public virtual" Mr. Microsoft? I digress.
If you find scenarios where the Toolkit controls are failing with UpdatePanels, please create a new forum topic and include the most simplified code sample reproducing the problem as you can, and I will test and attempt to fix immediately.
I'm going back through the forums and testing existing code sample.
I should have another update shortly.
Hope this helps.