Use ToolkitScriptManager instead of ScriptManager

Shawn Burke’s Blog: Updated Toolkit Release Now Available
http://blogs.msdn.com/sburke/archive/2007/06/07/updated-toolkit-release-now-available.aspx

Other neat stuff
http://www.asp.net/AJAX/AjaxControlToolkit/Samples/Walkthrough/OtherNeatStuff.aspx

News about new AJAX
http://blogs.infragistics.com/blogs/tony_lombardo/archive/2008/07/28/script-combining-what-s-the-big-deal.aspx

AjaxControlToolkit-Framework3.5SP1.zip
http://www.codeplex.com/AjaxControlToolkit/Release/ProjectReleases.aspx?ReleaseId=16488#ReleaseFiles

Installing AJAX Toolkit for Visual Studio .NET 2005
http://www.programminghelp.com/web-development/ajax/installing-ajax-toolkit-for-visual-studio-net-2005/

Script combining made easy [Overview of the AJAX Control Toolkit’s ToolkitScriptManager]
http://blogs.msdn.com/delay/archive/2007/06/11/script-combining-made-easy-overview-of-the-ajax-control-toolkit-s-toolkitscriptmanager.aspx

Batch JavaScript Libraries for Increased Performance
http://stevesmithblog.com/blog/batch-javascript-libraries-for-increased-performance/

Combining, Compressing, Minifying ASP.Net ScriptResource and HTML Markups
http://www.codeproject.com/KB/aspnet/AspNetOptimizer.aspx

Using the ASP.NET AJAX Client Library without a ScriptManager
http://blogs.infragistics.com/blogs/jess_chadwick/archive/2008/07/11/using-the-asp-net-ajax-client-library-without-a-scriptmanager.aspx

.NET 3.5 SP1 Doesn’t Provide Composite Script Registration from an IScriptControl (out-of-the-box)
http://seejoelprogram.wordpress.com/2008/08/19/net-35-sp1-doesnt-provide-composite-script-registration-from-an-iscriptcontrol-out-of-the-box/
webCast on ScriptCombining
http://download.microsoft.com/download/9/e/6/9e610c44-aa73-4769-9536-a4834d723a48/WinVideo-ScriptCombining.wmv

While using Toolscriptmanager:
The encoding information is missing in the response content of .js files
http://www.codeplex.com/AjaxControlToolkit/WorkItem/View.aspx?WorkItemId=12327