Hi Ndivhuwo, the default timeout is set to 5 seconds as far as i know. You can either limit the size of the pictures being uploaded or extend the server timeout.
To limit the size of the picture being uploaded is to change the quality settings of the camera widget, i.e. open the camera widget and change the image quality to 500x500.
To extend the server timeout you need to make changes to the phonegap package. Then you need to edit the entry.js in the src\www\scripts folder
// Perform any custom operations on the dojoConfig object here
window.dojoConfig.server.timeout = 15000;