I am getting the same error, but I've narrowed it down to the line of code that causes the error, so hopefully this might help. (I cannot send any code / sample project due to the sensitivity of our projects).
We use Telerik web controls a lot (great contorls!!!). We have a simple Treeview on the left with a bunch of fields on the right. in those fields I have 2 rad editors (WYSIWYG HTMl editors).
When I click something on the left treeview, it populates information into the fields on the right from the DataBase. WHen I click the first time, it loads everything fine. When I click again on the Treeview, it errors out.
editor.Html = objasdf.asdfText;
That line of code kills it. I'm not sure Why, but I know when I comment it out, it works fine...
So the error could be when you're updating a control that's "ajaxified" already and it messes it up... Not sure
I hvae about 10 UpdatePanels on my web form, not sure if having that many can cause this as well.
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Edit: I'm looking at the code you provided and you have nested UpdatePanels... is that allowed? I'm not sure if that is what is causing the errors...
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Edit #2: Here is how the error is raised in my scenario:
Whenever I update a control with HTML text. ie. "<h1> HI </h1>" . I get an error when I update the rad:editor from telerik with '<h1> hi </h1>'. That is what causes this error for me.
Again I think it might be custom 3rd party controls mixing with beta asp.net ajax. (I'm using Beta 1 BTW).
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