Hi Dell,
No, when the user opens the report from the Server it is copied down to the local work station and requires the Connection info ( client ) to be installed locally. As you know RPT file do not keep the password within so it must prompt for it.
With a report based on a Universe when the user hits refresh what CR is doing is connecting to the WEBI server which then queries the Universe and gets the connection info including the password ( If it's configured that way ) and SQL etc, and passes that down to the local PC for CR to use as the data source.
You do have the option to save all of the info in the Universe, so have a look in the UNV Designer and connection info. They may be able to configure this for each user. Depending on if the Server supports it also.
So depending on how they configured the UNV connection depends on what gets passed down to CR Designer including the password.
Hope that's clear?
Don