The conditions that can cause this timeout include the following:
Running the Windows Phone 8 Emulator from a bootable VHD. This configuration is not supported.
A faulty hard drive. Consider running the chkdsk program.
A hard drive that needs to be defragmented. Consider defragmenting the drive.
A hard drive that is almost full. Check the space available on the drive.
A hard drive that is slowed by a large number of read requests from other running applications. Reduce the number of applications that are accessing the disk.
Not enough memory is available because of other running applications. Reduce the number of applications that are consuming memory or increase the amount of memory.
Generally, any factor that is contributing to poor performance on the system. Begin troubleshooting with the component that has the lowest subscore in the Windows Experience Index, which you can find on the Performance Information and Tools page of Control Panel.