Package configuration not used after deployment?

I've been searching for an answer to my question quite some time now and I've not been able to figure it out yet.
Situation:
- I've created a SSIS package containing a bulk insert task.
- I've added a package configuration containing the appropriate connection manager (i.e. dev, beta or live)
- CreateDeploymentUtility = true
- I've copied the deployment folder to our beta server and I started the manifest file to install the package to the sql 2005 server, after that I specified the config file location and changed the value so the approriate connection manager is used.
- When I execute the package from the sql server the package doesn't read the value from the xml config file, it uses the connection which was originally specified in the package, whereas when I run the package from my BIDS it is reading the value from the xml config file?

I can't seem to figure out why this is happening? am I missing something here?
Thnx.

Hmm it seems you need to explicitely point to a config file when running the package,...