I've decided to post the source of what I have now. I don't think that
my previous description was clear after reading it again.

Imports System.Text
Imports System.ComponentModel
Imports System.Web.UI
Imports System.Web.UI.WebControls
Imports IWebServices

<ToolboxData("<{0}:FLSDataGrid runat=server></{0}:FLSDataGrid>")> _
Public Class FLSDataGrid
   Inherits System.Web.UI.WebControls.DataGrid

#Region "Public Methods"

#Region "Constructors"

   Public Sub New()

       MyBase.New()
       Me.EnableViewState = True

       m_addrow = New DataGridItem(-1, -1, ListItemType.SelectedItem)

       Me.ViewState.Add("m_SortCriteria", "")
       Me.ViewState.Add("m_SortDirection", "ASC")
       Me.ViewState.Add("m_SearchEnabled", False)

   End Sub

#End Region

#End Region

#Region "Public Properties"

   Public Property WebDataSource() As IDataWebService
       Get
           Return m_WebDataSource
       End Get
       Set(ByVal Value As IDataWebService)
           m_WebDataSource = Value
           MyBase.VirtualItemCount =
m_WebDataSource.RetrieveRowCount()
           Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))
       End Set
   End Property

   Private Property TextFieldsNeeded()
       Get
           If Not Me.ViewState.Item("m_TextFields") = Nothing Then
               Return Me.ViewState.Item("m_TextFields")
           Else
               Return 0
           End If
       End Get
       Set(ByVal Value)
           Me.ViewState.Item("m_TextFields") = Value
       End Set
   End Property

   Public Property SearchEnabled() As Boolean
       Get
           Return Me.ViewState.Item("m_SearchEnabled")
       End Get
       Set(ByVal Value As Boolean)
           Me.ViewState.Item("m_SearchEnabled") = Value
       End Set
   End Property

   Public Property SortCriteria() As String
       Get
           Return Me.ViewState.Item("m_SortCriteria")
       End Get
       Set(ByVal Value As String)
           Me.ViewState.Item("m_SortCriteria") = Value
       End Set
   End Property

   Public Property SortDirection() As String
       Get
           Return Me.ViewState.Item("m_SortDirection")
       End Get
       Set(ByVal Value As String)
           Me.ViewState.Item("m_SortDirection") = Value
       End Set
   End Property

#End Region

#Region "Protected Methods"

   Protected Overrides Sub Render(ByVal output As
System.Web.UI.HtmlTextWriter)

       MyBase.Render(output)

   End Sub

   Protected Friend Overloads Sub OnPreRender(ByVal e As EventArgs)
       For Each c As Label In MyBase.Controls
           c.EnableViewState = False
       Next
       Me.CreateAndRegisterScripts()
       Me.CreateFooter()
   End Sub

   Protected Sub Sort(ByVal sender As Object, ByVal e As
DataGridSortCommandEventArgs) Handles MyBase.SortCommand

       If SortCriteria = e.SortExpression Then
           If SortDirection = "ASC" Then
               SortDirection = "DESC"
           Else
               SortDirection = "ASC"
           End If
       Else
           SortCriteria = e.SortExpression
           SortDirection = "DESC"
       End If

       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

   Protected Overloads Overrides Sub LoadViewState(ByVal savedState As
Object)

       MyBase.LoadViewState(savedState)

       For Each str As String In Me.ViewState.Keys
           If str.StartsWith("txtAddRow") Then
               Page.Response.Write(Me.ViewState.Item(str))
           End If
       Next
       Me.CreateFooter()

   End Sub

   Protected Sub PageEvent(ByVal sender As Object, ByVal e As
DataGridPageChangedEventArgs) Handles MyBase.PageIndexChanged

       MyBase.CurrentPageIndex = e.NewPageIndex
       If SearchEnabled = True Then

           Dim param As DataSet = New DataSet("Search Parameters")
           param.Tables.Add("Parameters")

param.Tables("Parameters").Rows.Add(param.Tables("Parameters").NewRow())

           Dim editcolumn As Boolean = True
           Dim ii As Integer = 0

           For Each tc As TableCell In m_addrow.Cells

               If editcolumn Then

                   editcolumn = False

               Else

                   param.Tables("Parameters").Columns.Add("@" +
DirectCast(MyBase.DataSource,
DataSet).Tables(0).Columns(ii).ToString())
                   param.Tables("Parameters").Rows(0).Item(ii) =
Me.ViewState.Item(DirectCast(tc.Controls(0), TextBox).ID).ToString()
                   ii += 1

               End If

           Next

           MyBase.DataSource = WebDataSource.RetrieveRecord(param)

       Else

           MyBase.DataSource =
WebDataSource.RetrieveRowsSubset(e.NewPageIndex, MyBase.PageSize,
Me.SortCriteria, Me.SortDirection)

       End If

       MyBase.DataBind()
       Me.CreateFooter()

   End Sub

   Protected Sub EditEvent(ByVal sender As Object, ByVal e As
DataGridCommandEventArgs) Handles MyBase.EditCommand

       Me.EditItemIndex = e.Item.ItemIndex
       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

   Protected Sub CancelEvent(ByVal sender As Object, ByVal e As
DataGridCommandEventArgs) Handles MyBase.CancelCommand

       Me.EditItemIndex = -1
       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

   Protected Sub UpdateEvent(ByVal sender As Object, ByVal e As
DataGridCommandEventArgs) Handles MyBase.UpdateCommand

       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

       Dim param As DataSet = New DataSet("Update Parameters")
       param.Tables.Add("Parameters")

param.Tables("Parameters").Rows.Add(param.Tables("Parameters").NewRow())

       Dim editcolumn As Boolean = True
       Dim deletecolumn As Boolean = True
       Dim i As Integer = 0

       For Each tc As TableCell In e.Item.Cells
           If editcolumn Then
               editcolumn = False
           ElseIf deletecolumn Then
               deletecolumn = False
           Else

               Dim tb As TextBox = tc.Controls(0)
               param.Tables("Parameters").Columns.Add("@" +
DirectCast(MyBase.DataSource, DataSet).Tables(0).Columns(i).ToString())
               param.Tables("Parameters").Rows(0).Item(i) = tb.Text
               i += 1

           End If
       Next

       Me.WebDataSource.UpdateRecord(param)
       Me.EditItemIndex = -1
       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

   Protected Sub DeleteEvent(ByVal sender As Object, ByVal e As
DataGridCommandEventArgs) Handles MyBase.DeleteCommand

       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

       Dim param As DataSet = New DataSet("Update Parameters")
       param.Tables.Add("Parameters")

param.Tables("Parameters").Rows.Add(param.Tables("Parameters").NewRow())

       Dim editcolumn As Boolean = True
       Dim deletecolumn As Boolean = True
       Dim i As Integer = 0

       For Each tc As TableCell In e.Item.Cells
           If editcolumn Then
               editcolumn = False
           ElseIf deletecolumn Then
               deletecolumn = False
           Else

               param.Tables("Parameters").Columns.Add("@" +
DirectCast(MyBase.DataSource, DataSet).Tables(0).Columns(i).ToString())
               param.Tables("Parameters").Rows(0).Item(i) = tc.Text
               i += 1

           End If
       Next

       Me.WebDataSource.DeleteRecord(param)
       Me.EditItemIndex = -1
       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

   Protected Sub AddRecordEvent(ByVal sender As Object, ByVal e As
EventArgs)

       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

       Dim param As DataSet = New DataSet("Update Parameters")
       param.Tables.Add("Parameters")

param.Tables("Parameters").Rows.Add(param.Tables("Parameters").NewRow())

       Dim editcolumn As Boolean = True
       Dim i As Integer = 0

       For Each tc As TableCell In m_addrow.Cells
           If editcolumn Then
               editcolumn = False
           Else

               param.Tables("Parameters").Columns.Add("@" +
DirectCast(MyBase.DataSource, DataSet).Tables(0).Columns(i).ToString())
               param.Tables("Parameters").Rows(0).Item(i) =
Me.ViewState.Item(DirectCast(tc.Controls(0), TextBox).ID).ToString()
               i += 1

           End If
       Next

       Me.WebDataSource.InsertRecord(param)

       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

#End Region

#Region "Private Methods"

   Private Sub FLSDataGrid_Init(ByVal sender As Object, ByVal e As
System.EventArgs) Handles MyBase.Init

       Me.SetDefaultAttributes()
       Me.CreateDynamicControls()
       Me.CreateAndRegisterScripts()

   End Sub

   Private Sub SetDefaultAttributes()

       MyBase.AllowPaging = True
       MyBase.AllowCustomPaging = True
       MyBase.AllowSorting = True

   End Sub

   Private Sub CreateDynamicControls()

       Dim ecc As EditCommandColumn = New EditCommandColumn
       ecc.EditText = "Edit"
       ecc.CancelText = "Cancel"
       ecc.UpdateText = "Save"
       MyBase.Columns.Add(ecc)

       Dim bc As ButtonColumn = New ButtonColumn
       bc.ButtonType = ButtonColumnType.LinkButton
       bc.Text = "Delete"
       bc.CommandName = "Delete"

       MyBase.Columns.Add(bc)

       m_AddBtn = New LinkButton
       m_AddBtn.EnableViewState = True
       m_AddBtn.ID = "m_AddBtn"
       m_AddBtn.Text = "Add "
       m_AddBtn.Visible = True
       m_AddBtn.Attributes.Add("onClick", "ConfirmSave()")
       AddHandler m_AddBtn.Click, AddressOf Me.AddRecordEvent

       m_PlaceHolderAdd = New PlaceHolder
       m_PlaceHolderAdd.EnableViewState = False
       m_PlaceHolderAdd.Controls.Add(m_AddBtn)

       m_SearchBtn = New LinkButton
       m_SearchBtn.EnableViewState = False
       m_SearchBtn.ID = "m_SearchBtn"
       m_SearchBtn.Text = " Search"
       m_SearchBtn.Visible = True
       AddHandler m_SearchBtn.Click, AddressOf Me.SearchRecordEvent

       m_PlaceHolderSearch = New PlaceHolder
       m_PlaceHolderSearch.EnableViewState = True
       m_PlaceHolderSearch.Controls.Add(m_SearchBtn)

   End Sub

   Private Sub CreateAndRegisterScripts()

       Dim ConfirmSaveFunction As String = "<SCRIPT
language='JavaScript'>function ConfirmSave() { if (confirm('Proceed
with saving new record?')) return true; if (document.all &&
window.event) event.returnValue = false; return false; }</SCRIPT>"
       Dim ConfirmDeleteFunction As String = "<SCRIPT
language='JavaScript'>function ConfirmDelete() { if (confirm('Proceed
with deleting record?')) return true; if (document.all && window.event)
event.returnValue = false; return false; }</SCRIPT>"
       Page.RegisterClientScriptBlock("ConfirmSave",
ConfirmSaveFunction)
       Page.RegisterClientScriptBlock("ConfirmDelete",
ConfirmDeleteFunction)

       Dim DeleteConfirm As String = " <SCRIPT language='JavaScript'>
" + _
       " for(i=0;i<document.links.length;i++) " + _
       " { " + _
       " var x = document.links[i]; " + _
       " if(x.innerText==" + ControlChars.Quote + "Delete" +
ControlChars.Quote + ") " + _
       " x.onclick = ConfirmDelete; " + _
       " continue; " + _
       " } " + _
       " </SCRIPT> "

       Page.RegisterStartupScript("DeleteConfirm", DeleteConfirm)

   End Sub

   Private Sub CreateFooter()

       Dim row As DataGridItem = New DataGridItem(-1, -1,
ListItemType.SelectedItem)
       Dim arr As New ArrayList
       Dim firstControl As Boolean = True
       Dim i As Integer = 0

       For Each a As TableCell In MyBase.Items.Item(0).Cells
           If a.Controls.Count > 0 Then
               If firstControl Then

                   Dim b As TableCell = New TableCell
                   b.Controls.Add(m_PlaceHolderAdd)
                   b.Controls.Add(m_PlaceHolderSearch)
                   firstControl = False
                   arr.Add(b)

               End If

               arr(0).ColumnSpan += 1

           Else

               Dim b As TableCell = New TableCell
               Dim c As TextBox = New TextBox
               c.ID = "txtAddRow" + i.ToString()
               If Not Page.IsPostBack Then
                   Me.ViewState.Add(c.ID, "")
               End If
               c.Text = Me.ViewState.Item(c.ID)
               ' c.Text = Page.Request.Form.Item(c.ID)
               AddHandler c.TextChanged, AddressOf Me.TXT_Unload
               b.controls.Add(c)
               arr.Add(b)
               i += 1

           End If
       Next

       For Each a As TableCell In arr
           row.Cells.Add(a)
       Next

MyBase.Controls(0).Controls.AddAt(MyBase.Controls(0).Controls.Count -
2, row)
       m_addrow = row

       For Each dgi As DataGridItem In Me.Items
           For Each tc As System.Web.UI.WebControls.TableCell In
dgi.Cells
               If Not tc.HasControls() Then
                   tc.EnableViewState = False
               End If
           Next
       Next

   End Sub

   Private Sub TXT_Unload(ByVal sender As Object, ByVal e As
System.EventArgs)

       Me.ViewState.Item(sender.id) = DirectCast(sender, TextBox).Text

   End Sub

   Private Sub SearchRecordEvent(ByVal sender As Object, ByVal e As
System.EventArgs)

       Me.SearchEnabled = True
       Me.PageEvent(Me, New DataGridPageChangedEventArgs(Me,
Me.CurrentPageIndex))

   End Sub

#End Region

#Region "Private Members"

   Private m_WebDataSource As IDataWebService
   Private m_AddBtn As LinkButton
   Private m_SearchBtn As LinkButton
   Private m_PlaceHolderAdd As PlaceHolder
   Private m_PlaceHolderSearch As PlaceHolder
   Private m_addrow As DataGridItem

#End Region

End Class