WooCommerce PayPal IPN timed out

I am using WooCommerce and using PayPal to take payments. I have everything set up in woocommerce and I am in paypal sandbox mode.

When I take a payment the IPN doesn’t seem to be connecting as all orders have a status of ‘pending’.

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I have never had this problem before when setting up woocommerce, so I checked the paypal logs in woocommerce and I see its caused by the server timing out.

Log

11-06-2013 @ 11:51:03 - Checking IPN response is valid...
11-06-2013 @ 11:51:03 - IPN Request: Array
(
    [body] => Array
        (
            [cmd] => _notify-validate
            [mc_gross] => 37.19
            [invoice] => WC-313
            [protection_eligibility] => Ineligible
            [item_number1] => IPAD2CS
            [payer_id] => 7NB6TCDYAFG3W
            [tax] => 6.20
            [payment_date] => 03:49:40 Nov 06, 2013 PST
            [payment_status] => Pending
            [charset] => windows-1252
            [mc_shipping] => 0.00
            [mc_handling] => 0.00
            [first_name] => Colin
            [notify_version] => 3.7
            [custom] => a:2:{i:0;i:313;i:1;s:19:"order_527a26e56fb3f";}
            [payer_status] => verified
            [business] => jane@example.co.uk
            [num_cart_items] => 1
            [mc_handling1] => 0.00
            [verify_sign] => AOh0tu.5JUQyG2Aao4MpntBA2sFjAN6AGJpJKVjJsWjl6gE0L-IxvOXP
            [payer_email] => colin@example.co.uk
            [mc_shipping1] => 0.00
            [tax1] => 0.00
            [txn_id] => 50B94166L65378617
            [payment_type] => instant
            [payer_business_name] => Jadeneed Ltd
            [last_name] => March
            [item_name1] => Ipod 
            [receiver_email] => jane@example.co.uk
            [quantity1] => 1
            [pending_reason] => unilateral
            [txn_type] => cart
            [mc_gross_1] => 30.99
            [mc_currency] => GBP
            [residence_country] => GB
            [transaction_subject] => a:2:{i:0;i:313;i:1;s:19:"order_527a26e56fb3f";}
            [payment_gross] => 
            [ipn_track_id] => 77f0ae30a8a3
        )

    [sslverify] => 
    [timeout] => 60
    [httpversion] => 1.1
    [headers] => Array
        (
            [host] => www.paypal.com
        )

    [user-agent] => WooCommerce/2.0.18
)

11-06-2013 @ 11:52:03 - IPN Response: WP_Error Object
(
    [errors] => Array
        (
            [http_request_failed] => Array
                (
                    [0] => connect() timed out!
                )

        )

    [error_data] => Array
        (
        )

)

11-06-2013 @ 11:52:03 - Received invalid response from PayPal
11-06-2013 @ 11:52:03 - Error response: connect() timed out!

Does anyone now what is causing this and how I can fix it?

Any help greatly appreciated!

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