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I don't know why it is timing out.

The database gets synced a minute or so after you make a change, or every hour if you don't do anything (assuming the app is open). I don't know how you force the phone to do an immediate sync, though I imagine there is a way. The only syncing that happens during an iTunes sync is the iTunes stuff, I believe.

Open up the console application and look at the httpd log files in /var/log/httpd - there should be an access_log and an error_log. Is anything added to either file when you try to connect? And is the desktop OmniFocus app able to connect to the WebDAV server and sync using the numeric version of the address?