Greg ,
1 - when the file be uploaded , it will do the postback , and fire the FileUploaded event.
if your page use MSAJAX, it will be a AJAX postback , otherwise it will be a FORM postback.
2 - Uploader should work fine for UpdatePanel .
I think your code should be something special , for example ,maybe dynamic creating the control.
You can try to build aother simple page with your control creating logic , and try to reproduce this error.
And then post the code , I will help you to check which part cause that error.
Regards,
Terry