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Dave has a fantastic and very detailed post about our implementation of the Observer pattern in ASP.NET Ajax 4.0.
This feature is what enables the live bindings to work.
Check it out! http://weblogs.asp.net/infinitiesloop/archive/2008/11/09/asp-net-ajax-4-0-observing-updates-to-pojos-plain-ole-javascript-objects.aspx
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