Using the ASP.NET UpdatePanel Control with Master Pages
Any ASP.NET page that includes an UpdatePanel control also requires a ScriptManager control. To use UpdatePanel controls with master pages, you can put a ScriptManager control on the master page. In this scenario, the master page provides a ScriptManager control for every content page. If you do not want partial-page updates enabled for individual content pages, you can disable partial-page updates for those pages.
Alternatively, you can put the ScriptManager control on each content page. You might do this if only some of the content pages will contain UpdatePanel controls.
You can see the code in action in this tutorial by clicking the Run It buttons. To implement the procedures in your own development environment you need:
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Visual Web Developer Express Edition or Microsoft Visual Studio 2005.
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The latest release of Microsoft ASP.NET AJAX installed and configured. For more information, see Installing ASP.NET AJAX.
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An ASP.NET AJAX Web site
check out complete example
http://ajax.asp.net/docs/tutorials/UsingUpdatePanelMasterPages.aspx