Watermark extender interferes with trigger

I'm playing around with a demo page where I have a number of extenderson the same page. There appears to be an incompatibility currently ifyou have a watermark extender on the same page as the always visibleextender. I'm basically duplicating the 2 samples, just putting themon the same page. If I have a watermark extender on the page and tryto change the position of the always visible clock, the first postbackworks (sometimes) and after that the update panel does not trigger apostback when a different selection is made in the position dropdown.

Iwas able to reproduce the behavior with a very simple page containingthe code for the watermark and the code for the always visible extendertaken directly from the samples. happens in IE 6 and Firefox both. When I remove the watermark extender from the page, the trigger firessuccessfully every time the dropdown selected index changes as expected.

CurtisTed was looking at an issue very much like this yesterday. The UpdatePanel was behaving in a way that was arguably a bug. I think he worked around it by putting the TBW in the same UpdatePanel. I'll let him share the details (he's sick today).
I am having a similar issue with the watermark extender. In my case, I have a watermark textbox in one panel and an atlas update panel that contains a gridview with edit enabled. When I do editing in the gridview, I can see the watermark textbox somehow gets involved, which I have no idea why.