Symptoms

On occasion, users add too many lines to a textbox field in an infopath form that is used for form name on upload to SharePoint document library. The InfoPath process will fail at the document upload event with the follow error message:

Server was unable to process request. The specified file or folder name is too long. The URL path for all files and folders must be 260 characters or less (and no more than 128 characters for any single file or folder name in the URL). Please type a shorter file or folder name.
 

Diagnoses

Issue is reproducible outside of K2 by creating a new folder in a document library and the folder has a very long name, you will receive the error message.
 

Resolution

The issue is a limitation in SharePoint Server 2007, see link below.
http://smallbusiness.support.microsoft.com/en-us/kb/894630