Moss 2007 having some problems with the AJAX compatibility.
Many Asp.net controls will not support Ajax and LinkButton is
one of them.Try to avoid using this Control and Use Button Control
instead and use ButtonType property to get a look and feel of LinkButton.
e.g.
Button _btn;
_btn.ButtonType = ButtonType.Link;
N.B.-- If it strictly the requirement is with Ajax ,then go for Button instead of LinkButton
else LinkButton Works Great....
Happy Coding......