Error 5566 - Infopath form to GetUserProfileByName

I have tried everything I can find to fix this but not having any luck....:(

I have a multi server farm (2 WFE, 2 APP, 1 Load Balancer)

Infopath Form: Created an infopath form that calls the userprofileservice.asmx for method GetUserProfileByName (the data connection is called CreateUserProfileByName in Infopath)

Web Application: Have tried classic and claims with NTLM and Kerberos (nothing works)

Browser : IE 8

The form works fine in Infopath itself. However when published to the server I get the dreaded 5566 error. Pretty much have exhausted all suggestions from the web.

The error message in ULS is - The following query failed: CreateUserProfileByName (User: Domain\MyFirstName.MyLastName, Form Name: Template, IP: , Connection Target: http://spsite/sites/SiteRequest/ConnectionLibrary/file.udcx, Request: http://spsite/sites/SiteRequest/Lists/Requests/AllItems.aspx, Form ID: urn:schemas-microsoft-com:office:infopath:list:-AutoGen-2012-08-28T23:06:23:223Z Type: DataAdapterException, Exception Message: The remote server returned an error: (401) Unauthorized. The remote server returned an error: (401) Unauthorized.)

• Tried using a udcx file with a hard coded username and password
• Tried using secure store service
• Tried disabling ASP.Net impersonation
• Tried with NTLM first and then with Kerberos Web App
• Tried both claims and classic authentication ( guess the former does not work with infopath)
• Made sure loopback was disabled on all servers
• Have ensured I can get to the webservice directly in a browser
• Hosts files on the WFEs point to themselves

Nothing works...:(....any ideas?

Thanks in advance,
Jake.