ASP.NET AJAX contains both a server-side Ajax framework and a client-side Ajax framework. The server-side framework provides developers with an easy way to implement Ajax functionality, without having to possess much knowledge of JavaScript. The framework includes server controls and components and the drag and drop functionality. This framework is usually preferred when you need to quickly ajaxify an asp.net application. The disadvantage is that you still need a round trip to the server to perform a client-side action.
The Client-Side Framework allows you to build web applications with rich user-interactivity as that of a desktop application. It contains a set of JavaScript libraries, which is independent from ASP.NET. The library is getting rich in functionality with every new build released.