Hi Tlsterling,
Based on your description, here is the sample which I use DragPanelExtender and HoverMenuExtender also we can add an UpdatePanel inside Panel8. Panel 7 is designed for drag. Of course , it is only a primary sample , so you should do some modifications to make it more stamble and address your requirements.
<%@ Page Language="C#" %>
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<script runat="server">
</script>
<html xmlns="http://www.w3.org/1999/xhtml" >
<head runat="server">
<title>Untitled Page</title>
</head>
<body>
<form id="form1" runat="server">
<asp:ScriptManager ID="ScriptManager1" runat="server">
</asp:ScriptManager>
<asp:Panel ID="HoverPanel" runat="server" Width="250px" Style="z-index: 20; display:none;">
<asp:Panel ID="Panel7" runat="server" Width="100%" Height="20px" BorderStyle="Solid"
BorderWidth="2px" BorderColor="black">
<div class="dragMe">
Drag Me</div>
</asp:Panel>
<asp:Panel ID="Panel8" runat="server" Width="100%" Height="250px" Style="overflow: scroll;"
BackColor="#0B3D73" ForeColor="whitesmoke" BorderWidth="2px" BorderColor="black"
BorderStyle="Solid">
<div>
<p>
Here you can add your controls or an UpdatePanel.</p>
<hr />
</div>
</asp:Panel>
</asp:Panel>
<asp:LinkButton ID="LinkButton1" runat="server">LinkButton</asp:LinkButton>
<ajaxToolkit:HoverMenuExtender ID="RequisitionMenuExtender" PopupControlID="HoverPanel"
TargetControlID="LinkButton1" BehaviorID="MouseBehavior" PopupPosition="Bottom" runat="server">
</ajaxToolkit:HoverMenuExtender>
<ajaxToolkit:DragPanelExtender ID="DragPanelExtender1" BehaviorID="DragPanelBID" runat="server" TargetControlID="HoverPanel"
DragHandleID="Panel7" />
</form>
</body>
</html>
Hope this help
Best regards,
Jonathan