How To Deploy An Report And Connection String From Some Xml File

Suppose we are two developer.Who have SSRS install at there own system.
Our database server is intalled on our main db server.

1,First thing does it necessay to create a shared datasource.
I have a web application in which I want's to add a folder say My reports in which i will put my reports {that is .rdl file}
Then I want's to hit a url with render format as excel this will bring down my report in excel format.

2,How to configure a connection
I want's to pass the connection string in the rdl via some xml file let say myconnectionn xml file
which look like
<connection-sources>
<source name="Mycon1" default="true" >
Data Source=abcyukon;User ID=sa;Password=as;Initial Catalog=MyDbName1
</source>
<source name="Mycon2" skip="true" >
Data Source=asdsadabcyukon;User ID=sa;Password=as;Initial Catalog=MyDbName2
</source>
</connection-sources>

connection string would be where attribute default of source should be true.