watermark disappears after partial postback on another update panel

I have two update panels on page. One of them has an watermark toolkit control which just displays a piece of text in a textbox.

When the page loads the watermark is visible. But if there is a partial postback on the other updatepanel then the watermark disappears.

I am on beta 2 of ajax, and the most recent version of the toolkit.

Is this a known issue, a bug, or are there workarounds?

This scenario should work (and does in at least some circumstances) - please reply with acomplete, self-contained sample page that demonstrates the problem so that we can investigate the specific behavior you're seeing. Thank you!

Web Parts menu/dragging disabled after partial update

I have a:

UpdatePanel. Inside it is a WebPartZone. Inside it is a web part.

It really simple. Button click and change the textbox to something. My problem is that as soon as I execute this the web part "verb" menu goes away and you can't drag and drop the web part after the first time it does the partial update. When you first load the page menu/dragging and dropping works fine.

Is this is a bug?

I have the same problem with asp.net ajax RC!!!!

It seems there is a big bug!!!!

It seems there is no tester in the asp.net ajax development team!!!

To get around that problem can you on the postback set the webpartzone to enable again?