When importing customizations to CRM 4.0, the import fails with a message "generic SQL error". Digging a bit deeper the error message is really that a timeout has occured. The same error occurs when trying to create a new entity.
I increased the timeout as suggested in the link below
Increasing the timeout:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSCRM\OLEDBTimeout
This value does not exist by default, and if it does not exist then the default value will be 30 seconds. To change it, add the registry value (of type DWORD), and put in the value you want (measured in seconds). Then you have to recycle the CrmAppPool application pool for the change to take effect
By Increasing the time out in the registry will solve the problem. Number of seconds depends on the amount of data in the database.
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