I'm not sure If I understand the problem correctly but if you want to pass the value to another analysis through an action link then you should have a 'store is prompted' condition in the receiving analysis.
That will filter the analysis on the value that you click on in the analysis that has the action link.
The passing through is working correctly. But the xml that gets generated is the problem as its making the report not return any data
Can you explain why you need to use a presentation variable in stead of an 'Is Prompted' condition?
Have you tried to use the 'Is prompted' condition?
Did you get the same result?