I have not increased timeout as it is the same as it's always been, 30 seconds. We do use Xcache as well but both of these have always worked fine prior to the 4.1 release. We've been using 4.1 release candidates up to rc4 without any issues for a long time.
I rolled back to 4.1rc4 and the server is functioning properly again. Is there something in the final release version preventing us from using Xcache?