I have an application web service which just returns XML responses. In a browser, a URL like http://server:port/webservice/objects/list will return an XML list of the objects I want to use as a data source.
The webservice does ask for basic http authentication (which in chrome can be done with http://user:password@server:port/webservice/objects/list).
In InfoPath Designer 2013 I try to create a data connection to rest webservice using the same URL. It flashes a couple times, then gives two notices: "sorry we couldn't open [url]" and then "InfoPath cannot open the XML document: [url]. Not enough storage is available to process this command". It never asks for authentication so I doubt it's going where it's supposed to. I also tried to add a data connection From Other Sources > XML using the same link and got the same error.
While googling, it seems like many people have had similar issues, but almost always with https or server-side issues or old versions of IE. None of these are the case for me.
I get an event in event viewer as well every time I attempt to connect - attached screenshot, but it basically says the same thing.