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I've found that it's usually all about relative intelligence and knowledge of the subject matter at hand. People can BS other people into thinking that they are extremely intelligent if a) they are more knowledgeable with respect to the subject at hand, b) are substantially more intelligent* than the aforementioned other people, or c) the other people lack confidence, and it is therefore easy to convince them that they are wrong when in fact they are correct.
a and c are especially effective in combination when the subject matter at hand is relatively esoteric.
*note that more intelligent != very intelligent.
*edit*
That isn't necessarily a problem for the said dumb person trying maintain the illusion that he or she is a genius. All he or she has to do is convince all onlookers that the problem is much more difficult than it actually is. Using lots of often-heard-but-poorly-understood technobabble is one of the most common examples of this.
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