Check your firebug console for the error while uploading photos, I believe you will see Forbidden error there.
And, please, do the search before posting anything on the forum: http://www.oxwall.org/forum/topic/21910?&page=2
I can't reproduce the timeout issue on your website
You can increase the timeout period, however you will need to tweak the server setting as well, that can cause additional load on your server.
In order to do that go here:
ow_plugins/photo/static/js/upload.js
line 325
increase the value
timeout: 60000,
then go to your php.ini file and increase the value for these directives:
max_execution_time and max_input_time, but don't make it too big otherwise you will overload your server.
Also, this change will be overwritten while next update of the photo plugin