I found this at uTorrents website, and it worked for me. I am not getting any offline (timed out) status so far. Maybe it can be of some help to other users of uTorrent.
Slow Interrupted Internet Connection or Tracker Offline:-
* Try disabling IP resolving in the Peers tab's context menu
* Try disabling DHT (
Can be found in Preferences > BitTorrent)
* Try disabling UPnP and NAT-PMP (
Can be found in Preferences > Connection)
* Try disabling peer.resolve_country if it isn't already set to false (
Can be found in Preferences > Advanced)
* Try lowering maximum global number of connections to 200? 100? 50? (
Can be found in Preferences > BitTorrent)
* Try lowering net.max_halfopen to 4 (
Can be found in Preferences > Advanced)
* Connect your computer directly to the modem to make sure the problem is not cause by the router
* Try patching TCPIP.sys (Windows XP w/ SP2, Windows 2003 w/ SP1, or newer)? Windows Vista users can try this out, but no guarantees are made. Users not on Windows XP w/ SP2, Windows 2003 w/ SP1, Windows Vista, or newer can skip this step.
Restart your computer, modem, and router after performing any of the above