For a plain button you'll want to set the the button as disabled when the document loads, e.g.
$(document).ready(function () {
$('#btn')[0].disabled = true;
...
and then enable it with the select
function, e.g.
select: function (e, i) {
$("#<%=abc.ClientID %>").val(i.item.val);
$('#btn').disabled = false; // <-- enables button
},