SharePoint 2010: Unable to Display This Web Part. Error while executing web part: System.StackOverflowException: Operation caused a stack overflow.

This was caused by the XsltTransformTimeout when using an Xslt list view. This is corrected by installing the February 2012 Cumulative Update and by making the following change via PowerShell.

Check Current Setting

$farm = Get-SPFarm
$farm.XsltTransformTimeOut

The default setting is 1 second. The PowerShell code below changes it to 5 seconds which should be sufficient.

Change Setting to 5 Seconds

$farm = Get-SPFarm
$farm.XsltTransformTimeOut = 5
$farm.Update()