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Do you mean when you try to get the PS3 to connect using the connection test feature? Or when you're trying to sign in to PSN with your email address and password?
Timeout, prob the router not letting you access what you need due to its built in firewall. Best bet is set a manual IP on the PS3 and set that IP as a DMZ (all a DMZ is, is a specified IP address with all open ports).
I had this problem originally, and it turned out even though the signal strength was fine (at about 20% or so) it was still too low. I moved the router down stairs closer to the PS3 and it has worked fine ever since