This issue can affect any product that sends external alf events to SBM and doesn't include a username or password in the event ( sends events anonymously ). This issue mostly affects users who may have upgraded SBM to a version after 10.1. In versions of SBM prior to 10.1 SBM would accept anonymous external alf events but after 10.1 the default is to not accept anonymous events and require authentication.
The ItemManagement Web service operations GetWorkItemChangesForTransaction and GetWorkItem return the User's first and last name for Resource type attributes. This prevents the replication of these data type fields to other tools, which use the login ID, including SBM and the Agile Connector.
The problem was traced to the Windows Firewall. Once this was disabled (the company concerned had another firewall in use) the connection could be made with no further problems.