What is the difference between scriptmanager and scriptmanagerproxy in asp .net?
You can only have one script manager per page but you can have multiple proxies.
Used if you have the script manager in your master for instance which will go across all pages but you want a script manager reference in an underlying page or user control. In that instance you would add the proxy. If you added another script manager the page would error.
The offical MSDN documentation gives the details.