Setting up a web service or page method to add the tags to your database then calling it with asp.net ajax would be an easy solution then combine that with your auto complete box. And you would probably need another method for removing a tag to be called when the user clicks the x.
As for the actual tags, I think you could get that same look by styling an unordered list with a tags for the cross and maybe for the text. Then you could on success add the tag to the list using javascript.
The official site has some pretty good tutorials.
Luke Lowrey
2009-03-24 22:58:10