Instead of using ASP.NET's ScriptManager, you should instead use AjaxControlToolkit's ToolkitScriptManager. If you don't do this, you would also have a buggy RoundedCornersExtender.
<asp:ScriptManager ID="ScriptManager1" runat="server">
</asp:ScriptManager>
<ajaxToolkit:ToolkitScriptManager ID="ToolkitScriptManager1" runat="server">
</ajaxToolkit:ScriptManager>