Same problem here. I have a custom query in OnSelecting but other than that everything is quite standard. I tried turning off EnablePartialRendering, checking to see that the table has a primary key, and remaking the LINQ dbml. Here's the relevant code:
var v = from c in Util.DC.Customers
where !c.IsDeleted && c.Id == id
select c; <asp:LinqDataSource ID="LinqDataSource1" runat="server"
ContextTypeName="DataContext" TableName="Customers"
EnableUpdate="true" onselecting="LinqDataSource1_Selecting">
</asp:LinqDataSource>