My development team faced this problem in the last week when we were developing some distributed system.

One choice your have is to:

1 - Eliminate the connectionstring from "Settings" of the typed datasets;
2 - Add the System.Configuration reference to the typed dataset project
3 - Go to each typed dataset Designer.vb file and REPLACE the statement:
"Me._connection.ConnectionString = Global..."
for this one:

Me._connection.ConnectionString = System.Configuration.ConfigurationManager.AppSettings("CONNECTION")"

4 - Now your datasets should look for this tag, in the app.config XML file.
5 - If you don't provide the DAL.appconfig.xml file, the typed datasets will look for the Application.appconfig.xml and ... in this XML file you must add the tag:
....
</configSections>
<appSettings>
<add key ="CONNECTION" value ="connection string comes here"/>
</appSettings>
<connectionStrings>
....
See that it comes between configsections and appSettings.

6 - Now if you have the appconfig.xml for the application, you can benefit from taking the connectionstring from this file, instead of having it compiled into the DAL.dll. You can change the connection string in the xml file and see the changes in the connection.

For now, this is the only solution we have achieved for this problem.

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