InfoPath Dev

I'm trying to learn how data connections work and having problems...To quickly test the authentication capability of UDC, you can use hard-coded credentials in the .udcx file, correct?  So if I add the following to my .udcx file in my data connection library I should be able to connect to the database:

 <udc:Authentication>

<udc:UseExplicit CredentialType="Basic>

<udc:UserID>realUserIDgoeshere</udc:UserID>

<udc:Password>realPasswordgoeshere</udc:Password>

</udc:UserExplicit>

</udc:Authentication>

I get a SQL login prompt when I open the form which is published to Sharepoint (not browser-based).  Is that supposed to happen? What am I not doing correctly?

I lack  in the udcx creation, but the easiest way i have found to create them is connect to data source through infopath, once connection is created, click convert  this should create the appropriate udcx.

 Also confirm with your sharepoint farm administrator that embedded credentials is enabled within central admin.

I would not necessarily suggest using embedded credentials within a udcx.  I don't know if the way i have done it before is best practice, but create a stored procedure in sql server, create a sql account that can execute the stored procedure only (we must use sql authentication in our topography), then create a web service that has the information for login that calls the stored procedure.  Then using sharepoint permissions to call the web service.

Thanks for your valuable advice.  I am not planning on using embedded credentials, just testing to see what happens.  I will try your suggestion for using the stored procedure.