Robert
Indeed the last line the log above means that the server started. I started out fresh with the latest of eclipse and jboss 5.1.0, and got it started in eclipse. I left it running for a long time, but it did not timeout.
Can you check the jbossweb.sar\server.xml and make sure your HTTP connector is properly configured for 8080 or the port of your choosing? Looks like eclipse is trying to connect to the HTTP port but is timing out.
Thanks