I've seen issues with the Pause component before (the blue one), so I've swapped it out with the Diagnostics one (silver) in an effort to correct issues before. That may have been a red herring though, as I haven't seen the guts of the two components (they may very well be exactly the same) and I had also attempted other untested fixes prior to swapping out the components, so one of the other adjustments may have been the actual fix for my issue. One of the original Workflow internal developers mentioned once to me that the Pause components were problematic and sometimes broke, but that conversation took place in 2010, so that may not apply anymore.
Try swapping out the components, then have a look here and ensure your settings are all configured properly for timeouts:
https://www-secure.symantec.com/connect/forums/timeout-errors