Will this take away the timeouts?
Most unlikely - that to me seems to be a server communication problem, undoubtably solved by a ram upgrade, more likely just a higher bandwidth server would solve that out - probably hosting too many people!
No, they are PHP time outs...
anyone can mimic the timeouts if they have php installed on a web server.
all they'd have to do is do a lot of processing, in this server the processing time has to be greater than 60 seconds for a timeout. it stops infinite loops just using more and more ram... it's useful since a bad script can effectivly cause a memory leak by constantly assimilating more and more memory space as the execution progrsses.
basically there isn't enough resources to process submitted posts in the allowed time, thus people recieve the script exectuion timeout error page says the script has exceeded the maximum execution time.
more memory will help the situation, because the situation is simply caused by a lack of resources. it has nothing to do with bandwidth.