Graeme:the form is published to c:\temp
May I ask what is the sense of publishing a template to a local folder which is accessible only locally?
Publishing implies to be to location accessible over network like share folder, sharepoint form library, etc.
Graeme:I am getting the Infopath security notice "This form is located at an Internet location etc." and can't access my web service.
The text of error is misleading.
This error text is usually shown when I try to preview by F5 any Infopath template locally which accesses external data source/connection (for ex., web service). In such cases (testing, prototyping, usually without any publishing) I attribute to my Infopath XSN template the Full Trust and digitally sign it (in Infopath Designer 2010, File on ribbon > Info > Form Options > Security and Trust)