When you are sendind any response using "Response.Write(........)", then it may have some previous value.
try to clear it first and then ending it.
try this
=======================================================
Response.Clear();
if (dr.Read())
{
checkno = 0;
Response.Write("already exists");
}
else
{
checkno = 1;
Response.Write("continue");
}
Response.End();
=======================================================
And you are good to go. :)