Lotus,
Is your dev machine separate from K2 server box? And is the process you tried to deploy a SharePoint integrated process or InfoPath integrated?
In case yours is a distributed environment, on your dev machine, please try to add other servers to the trusted sites as follows:
1. From IE > Tools > Internet Options
2. Go to tab Security, select Trusted Sites and click button Sites
3. Add http://<servername> for each server box that is involved and press OK
HTH,
Frank
The statements and opinions made in my postings are my own, and do not reflect the opinions of SourceCode Technology Holdings, Inc. or its subsidiaries. All information is provided as is with no warranties, express or implied, and grants no rights or licenses.