Well, just to speed up the process at this moment I have replaced all 'eacute' characters with the regular 'e'.
Now about the timeout: I have 2024 active items - the results of running the feed are as follow:

"Google Base Feeder v.1.5.3 28.08.2007 10:25 started 2007/09/01 01:59:49
Feed file - (...) /feed/google_base.xml
Processing: Feed - Yes, Upload - No
Google Base File Complete In 4.271262 Seconds 2024 Records

So, it seems like it populated all items, however, I've got another error message:

This page contains the following errors:
error on line 25275 at column 343010: internal error

It seems to me like end of the file anyway, I'm not sure what the error is about - any clues?
Thanks,