Symptoms

We use 3 different types of notifications within the solution built.
Custom mails events, Notification mails. And mails being sent directly from the SmartForm.

What is happening is that when it comes from the SmartForm the email shows the actual email instead of just the display name.
 

Diagnoses

SmartForms emails rules do not display the display name of an AD user, rather just displaying the email address in the from address area.
 

Resolution

This issue has been logged as a bug, though there is currently no work around.