When using the lists service to query the "User Information List" (the SharePoint list where the users and groups is located), you may encounter the exception:

System.Web.Services.Protocols.SoapException:
    Exception of type 'Microsoft.SharePoint.SoapServer.SoapServerException'
    was thrown.
  at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(
      SoapClientMessage message,
      WebResponse response,
      Stream responseStream,
      Boolean asyncCall)
  at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(
      String methodName,
      Object[] parameters)
  at ListsDataServiceSample.SharePoint.Lists.Lists.GetList(String listName) in
      F:\Projects\Sandbox\SharePointWebServicesSample\ListsDataServiceSample\
          Web References\SharePoint.Lists\Reference.cs:line 213
  at ListsDataServiceSample.Program.Run() in
      F:\Projects\Sandbox\SharePointWebServicesSample\ListsDataServiceSample\
          Program.cs:line 28

This error will occur if you are not using the "Administrator" account, which of course, is not always ideal, especially if you are writing a client side app.

The solution to fix this is to grant the account permissions on the "User Information List":

And then give the user "Read" permissions on the list: