Hi John,
Adding that AJAX setting should only wrap the repeater in a div element, as this is how RadAjax renders its UpdatePanels by default. Thus, it should not result in such a behavior change.
I tried the code again with AJAX settings in the picture and I am attaching the test case I build here as a reference, so you can compare it with yours.
In the meantime, I can suggest trying an asp:UpdatePanel instead to see if it makes a difference. You can use its AsyncTriggers collection to add the external control, or its Update() server method in case its UpdateMode==Conditional.
Regards,
Telerik
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