Shared Data Source with prompted credentials - errors out.

Using Data Tools (VS 2010) to build report.
Have built a simple report while trying to diagnose this issue.  This report is created in a project that was originally built in BIDS2008 and migrated to Data Tools 2010.  This project contains an original shared dataset that does NOT
error out.
Report contains
     1) shared data source with properties set to prompted credentials.
     2) shared dataset using data source above
     3) 2 parameters (month and year)
     4) Report uses shared dataset
     5) 2 text boxes in the report body to display the parameters values.
When I try to preview this report I get the error:
     The execution failed for the shared data set "xxx"
     Cannot create a connection to data source 'Data source for shared dataset'
     Security processing failed with reason "3" ("password missing")
Now, if I changed that same shared dataset to use a static login and password; the report renders fine.
What is going on???

Hi RoseNeedsAVacation,
When you use shared data source with "Prompt for credential" option, please use SQL Server login credential to u view the report in BIDS or SSDT report designer environment.
Note: The shared data source will automatic switch to SQL Server authentication mode if we use "Prompt for credential" option.
After you deploy your report and shared data source to report server, please remember to configure your shared data source to use "Credentials supplied by the user running the report" option. Furthermore, select "Use
as Windows credentials when connecting to the data source" checkbox if the credentials that the user provides are Windows Authentication credentials. Do not select this check box if you are using database authentication (for example, SQL
Server Authentication).
For more information, please refer to the article below:
New Data Source Page (Report Manager):
http://technet.microsoft.com/en-us/library/ms180077(v=sql.100).aspx
Regards,
Elvis Long
TechNet Community Support

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