Hmm well, the datasource was all id's and people with the same name ;-) so it's hard to tell if this is working perfectly.
But it looks correct. Attached.
I had to add a dummy '1st level' person as the list box control wouldn't let me use the datasource with only one.
Also note I've let the template have the secondary datasource xml file included in the template so you can use it right out, but included the file separately as well for your reference.