Camera time out is related to the computer losing connection with the camera. It can be a myriad of things. I've seen bad USB ports, bad USB cables, noise on poorly made USB cables, too long of USB cables, and even broken USB plugs.
Can you try a shorter/newer cable? I just had a buddy almost give up on SGP because of this and it turned out to be the connector in his ATIK. He had to send it back for maintenance.
Chris