Note that it is not supported scenario to wrap RadAjaxManager control into RadAjaxPanel or used the both controls for updating the same controls on the page. Please suggest using just one of these Ajax components on the page and verify how it goes.
All the best,
the Telerik team
Registration for Q1 2011 What’s New Webinar Week is now open. Mark your calendar for the week starting March 21st and book your seat
for a walk through all the exciting stuff we ship with the new release!