I have MAC Quad Core 2.66 OSX 10.5.8 with 8gb of RAM using ADOBE AFTER EFFECTS CS5.5.
Firstly, my AE and Premiere are working flawlessly (aside from this problem) - I want to take advantage of the cool feature WARP STABILIZER - here's lays the problem. I imported a test file, a 10 sec clip quicktime video just to try out the Warp Stab. feature, and it goes into the first 'initializing' step and hangs. Despite waiting for a long time. Then eventually the infamous 'dynamic error connection timed out' message appears. After self analyzing the problem I discovered that once 'initialzing' the clip I go into the preference to observe the 'MEMORY & MULTIPROCESSING DETAIL' and to discover the 'STABILIZING AESELFLINK' is missing (which i believe should be listed when doing a 'warp stabilizer'
In case somebody has the same problem, the solve (that worked for me) was removing all the startup applications - you can turn on and off the automatic startup software via the SYSTEM PREFERENCE USER option.