Why doesn't a report with data source connections in a library work when installed?

I have added my data source connections to an rptLibrary file. These are picked up fine when running in the Report Designer, but when I install the report and run it in the Eclipse client (v4.0.6), the parameters are not being populated from local information (e.g. list of work item types). I have tried adding the library file as a resource but that makes no difference.

Given that the data source connections seem to be ignored when running an installed report, what am I doing wrong?