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OnValueChanged event work only after you put your mouse focus outside the editor then put it it
posted

<asp:UpdatePanel ID="UpdatePanel1" runat="server">

<ContentTemplate>

<ig:WebDropDown ID="dd1" runat="server" AutoPostBackFlags-ValueChanged="On" OnValueChanged="OnValueChanged">

</ig:WebDropDown>

<asp:Label ID="label1" runat="server"></asp:Label>

</ContentTemplate>

</asp:UpdatePanel>

protected void OnValueChanged(object s, EventArgs e)
{

label1.Text = DateTime.Now.ToString();

}

After the 2nd postback, the text editor in the WebDropDown do not receive any input from user (or sometimes still receive input but do not fire any ValueChanged event),  until you move your focus out then in. What we expect is to continuously monitor the user input, and give some related feedback