Those Danged Brits
I had never heard this story before:

Marathon Man (1976)

While filming Marathon Man Dustin didn't sleep for days in order to create the weary look. This obviously did not go well in the eyes of Laurence Olivier who grew impatient of the modern (Method Man). - Scottman

Addition: In fact, Laurence Olivier became so irritated by Dustin Hoffman's "method acting" that, one day during filming, he asked Hoffman why he looked so terrible. Hoffman told him that he had stayed up all night to achieve the exhausted look of his character. Olivier quipped, "Try acting." - Gibborino

The story is also included in
an article in the Hindu newspaper, a comment by Brian Risselada at ymdb.com, and probably a ton of other places.