Using an existing dataset with client reports in Visual Studio 2010

Question

I am trying to use an existing dataset as the datasource for a rdlc report inside of an ASP.NET web application in Visual Studio 2010. However, when I go to choose the dataset in for the report, the existing dataset is not available unless it exists in the root directory of the application. This was not the case in the 2008 version of the product and while I think this is possibly a namespace related issue, I am unable to track it down. Any suggestions are appreciated.

Edit:

Looks like this may be a possible bug:

http://connect.microsoft.com/VisualStudio/feedback/details/532338/datasets-in-subfolders-are-not-available-in-the-reports-rdlc-add-dataset-dialog#details