InfoPath forms error - System.Net.WebException: The remote server returned an error: (401)

Brower based InfoPath forms making calls to webservices on same server giving:

System.Net.WebException: The remote server returned an error: (401) Unauthorized. Microsoft.Office.InfoPath.Server.SolutionLifetime.DataAdapterException: The remote server returned an error: (401) Unauthorized.

Solution was to disableloopbackcheck >> http://support.microsoft.com/kb/896861