The bidding goes P P 1♠, and then LHO takes the 1♦ card out of the bid box, almost places it on the table, says "oh!" and then doubles instead. We called the director who said that a 1♦ call had been made, and was insufficient, and that technically she'd replaced 1♦ with X and barred her partner, but that since it was just a friendly club, he'd be nice and allow her to retract the X and either bid 2♦ and not bar partner or do anything else and bar partner. She bid 2♦ and I clarified with the director (so the opps wouldn't use the UI from the X -- I didn't expect them to know about UI and such) that info about length in ♣ and ♥ would be UI for RHO.
[The question isn't really about LHO being allowed to bid 2♦, but if people want to comment on what would happen in a tournament, feel free.]
So it goes:
P P 1♠ 2♦
P 2♥ 2♠ P
P P
And dummy is xxx J98x K1097 xx.
LHO leads ♥K (K from AK), then ♥A, which I ruff. I draw trump in 2 rounds and lead ♦J and LHO hops ♦A. LHO returns a low diamond, I insert ♦9 and win it (RHO discarding).
So LHO has shown up with ♥AK and ♦AQ (and ♠J). Only ♥Q and ♣AK are remaining. It seems that RHO must have ♥Q else she's 1) bid 2♥ with xx 10xxxx x AKxxx at best and thus has made fairly blatant use of the UI and 2) LHO has failed to raise partner with ♥AKQ and 16 points (and was going to open 1D instead of 1N, but these opponents needn't be trusted to bid 1N when it's correct).
So I hope LHO started with ♥AK10 and lead ♥J to pin the 10. RHO plays low and I have a problem: if I'm wrong I've given up my 140 for 110, but if I'm right I can pitch 2 clubs and score 170 (2nd club on the 4th diamond). I pitch and it loses to ♥Q and they cash ♣AK and I make only 110.
My question is: if this sort of thing happens at a tournament, ie the opps make use of UI (ie the 2♥ bid above) and I play for them not to have and thus take a losing line, do I have recourse, or do the opps just get slapped with a PP (Procedural Penalty -- for blatant misuse of UI) and I take my bad score?
That is, here, the auction might be rolled back to P P 1S 2D; P P ?, and I still bid 2S and may still play it there. I would no longer have the info about a 2H bid, but presumably I'm allowed the info about the 2H bid. My guess is that any use of info about the opponents is at my own risk, but this is a sufficiently funny situation that I'm not sure.
Side comment: RHO's action seems blatant enough to me to warrant a PP in a tournament -- comment on this if you disagree. Also, LHO's "fielding" of the use of UI is very strange. (Perhaps these opps should just be educated, even in a tournament, but in any case the actual legal questions remain.)
Andy
Edit: Here's the whole hand for your convenience:

Help

P P 1S 2D
P 2H 2S P
P P