SSIS Database Connection Problems And Deployment Problems

Well, I'm been trying to resolve my problems through searching previous post, but I'm starting to go around in circles. This is what my problem is: Originally, I created a SSIS package using windows authentication. Once I completed the work, I wanted to change the connection to SQL Server authentication and use xml configuration for deployment.

First problem: I edit the xml file, but can't use the connection
I double clicked the Connection Manager connection and changed the log on from Windows to SQL Server. Password would not save, so, I read about what most posts have been about and I can go into the SIS menu, choose Package Configurations and create a xml file with the name of my connection manager.

Then, I exit the package and go into the xml file and enter the password=XXXX; stuff right after the user Id. When I load the package, the connection does not load?? Shouldn't the package pick-up the password now that I have entered it? I used note pad to edit the xml. If I go into note pad, I can see the edit. If I use SSIS package config to view the file, I don't see the password. I'm also having sql agent task problems, but I think I will be able to solve this if I can get the package to run with the password in the design mode. Can anyone help me with this?