Agent SVN talks to the Subversion server using the SVN client, so in fact it is the SVN client (svn.exe) that is not timing out. OK, thanks for clarifying this.
The client has an error for timeout so I suspect it would eventually time out but I don't know what that Subversion timeout value is ...
The AUXPath is entered correctly but the remote SVN server was unreachable due to network issues.
The problem here is that AgentSVN is not timing out . The connection attempt should be aborted after some 30 seconds and there should be a Message saying "Cannot reach repository sever". - But that ...
If I click the "List..."-button in the "Project Binding Details"-Dialog and the SVN-server specified in the "AUX Path" is not available AgentSVN will hang forever (> 5minutes). Only way out is, to use Windows Task Manager to terminate the application.