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The AJAX Loading Indicator server behavior can only be applied once, in the master page. It notifies the site visitor that a panel is changing its state by displaying a loading indicator. This server behavior is accessible from the Application panel, Server Behaviors -> + -> MX AJAX Toolbox -> AJAX Loading Indicator. There is no dialog box to configure, you are just notified that the server behavior was applied successfully:
To see how the indicator looks by default and how you can customize its appearance, check out the How to customize the loading indicator tutorial.