How long does the report run before encountering this error? What datasources are you using in the query/queries that you're using in the report?
In my experience, timeouts can happen from the following below;
1) Poor network connection quality between the report/query server, datasource connection and/or user.
2) Long running-reports may require a look at the report and/or datasource queries and optimising them to run quicker either by re-designing the queries in the report or re-writing the datasource queries to rely on less aggregation during runtime and more on staged data.
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Mark Peterson
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