You can see a similar scenario in our Live XML rotator example - http://demos.telerik.com/aspnet-ajax/rotator/examples/livexml/defaultcs.aspx
The rotator datasource is retrieved from a remote location - in this case a RSS feed, but it can be a web service request as well. The returned XML is used as data for the rotator. If your web service returns a different type of data (e.g. JSON), you will need to do some processing before you can feed it to the rotator.
To prevent the whole page from updating when you wish to update the rotator, simply wrap it and the button in a ajax panel or use the RadAjaxManager control to ajaxify it.
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