Symptoms

When opening an InfoPath form, the smartobject values are not getting pulled into the InfoPath form. Eventually the smartobject call will time-out after about 90 seconds.
 

Diagnoses

Looking at the ULS logs, it appears as if there are 2 methods that kept calling each-other recursively.

---- Start SP log snippet -----
SourceCode.SharePoint.WebServices.K2SPFunctions.Shared.AttemptToGetFriendlyLoginName(SPWeb targetWeb, String loginName) at
SourceCode.SharePoint.WebServices.K2SPFunctions.Shared.GetFriendlyLoginName(SPWeb targetWeb, String loginName) at
SourceCode.SharePoint.WebServices.K2SPFunctions.Shared.AttemptToGetFriendlyLoginName(SPWeb targetWeb, String loginName) at
SourceCode.SharePoint.WebServices.K2SPFunctions.Shared.GetFriendlyLoginName(SPWeb targetWeb, String loginName) at
SourceCode.SharePoint.WebServices.K2SPFunctions.Shared.AttemptToGetFriendlyLoginName(SPWeb targetWeb, String loginName)
 

Resolution

This was a bug in 4.6.8 (And was fixed in 4.6.9.) We applied the patch provided by LABS and this resolved the issue.