i believe that you need to install the visual studio 2005 first and then install sql server 2005.
i think if i can still remember, somewhere in the microsoft website, i read that users have to install VS first then SS 2005.
i don't understand what do you mean with 'tool has timed out'. if you mean that when you click on the 'asp configuration tab' for instance, the page take sometime to load. and if it takes more than 30 seconds then that message get fired. this is usually normal sometimes, what you need to do here is to restart the page again and see how it goes.