Did you see this  post <http://support.microsoft.com/kb/2570355>  ?

I did a little searching (as a break from what I should be working on),
otherwise I have no expertise to share.  From what I read ERROR_SEM_TIMEOUT
error message and the wording is a hold-over from floppy drive terminology
and is a restatement of a low level IO timeout error.  One post talks about
file paths which are longer than 259, another talks about TCP timeout
issues, and another talks about  Windows Server 2008 issues.  Probably not
very helpful but it seems to bubble up from some resource starvation in the
kernel.



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