Looks like TimeOut in configuration is ignored. Tested with prefork and worker. Setting Timeout e.g. 10 and telneting to 80 shows that, connection is never closed. It can hang for hours. This affects both Global and VirtualHost configs.
This is due to activated accept filters on some OS in 2.2.x and up (see http://httpd.apache.org/docs/2.2/en/mod/core.html#acceptfilter). In this case httpd actually doesn't know that a connections has arrived when you only do a telnet to port 80.