Jim,
That is, unfortunately, one of the biggest current flaws in Logicity. The credentials we specify in Logicity Solution Builder only pass to whatever is the first database connection we encounter on the report and we don't have any way to handle multiple database connections. The only suggestion I have (at least until we make the enhancement on our end to properly handle this) is to look into using some sort of connection that doesn't require database credentials on the scheduling PC. I've had pretty good luck with setting up a File DSN as opposed to System or User DSN and saving the password in the .DSN file (not sure why Windows let's you do it in a file DSN but not the others). If that isn't an option perhaps some sort of Active Directory authentication or something like that.
Hope this at least steers you in the right direction,
Adam