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Sorry for the trouble this is causing! We've managed to duplicate what's going on here - the "Timed Out" messages are in error; syncs are proceeding just fine.

The messages seem to be occurring when the screen is dimmed shortly after OmniFocus starts a background sync. The app gets confused at that point and starts presenting the error message even if a given sync succeeds.

We'll fix it in an update, but for the time being, the workaround would be to reboot the phone (which stops that message from appearing when it shouldn't) and then to let the phone dim the screen itself, rather than dimming it manually. That gives the background sync more time to complete and reduces the chance the bug will bite you again.

Apologies for the inconvenience this is causing, folks - we're working on a fix.