Switches are supported only since version 4.1. I guess you are using an older version.

It seems to be some sort of syntax issue... if i try running the command from the winscp console i get this:

winscp> open user:pass@server timeout=60
Too many parameters for command 'open'.

I have a client with a slow FTP server, it takes 25 seconds or so to connect. Whenever i attempt to add the -timeout=xxx variable to the end of my open command, winscp just bails out. No session log file is even created. If i remove the -timeout variable, it attempts to work.

Here is the command line:
WinSCP3.exe /console /script=test.txt /log=log.txt

Here is the script:
option batch on
option confirm off
open user:pass@site -timeout=60
option transfer binary
get *05152008*
close
exit