Vlassis, if I understand you correctly, it is the Dynamic Recipient List report you want to refresh each time; in your screenshot above this is the actual output report that you are setting to refresh at runtime.
Does your Dynamic Recipient List report have prompts? If so, this seems to be the problem (at least that I am having). If your recipient report doesn't have prompts and has "refresh on open" it seems to work well, but once you add a prompt it fails to refresh.
If this sounds right, try removing the prompts from your recipient list report and try adding it to the publication again and see if it works.
This may not be a great resolution; it isn't for me as I want to be able to set and save prompts for a publication but it doesn't appear I can. I may have to come up with a way to run my recipient list with the criteria set and not prompted.
Phil.