Yes, I am using the hosted builder (and love it, especially the direct publish to itunesconnect). Total size on disk of my local project folder is 73mb. Not sure how much of that counts against the 40mb limit? Are there alternatives for working with bundles of images other than adding them via the "files" tab? I will work on upping the timeout value and report back. Android version of this app (same images) builds out to 53mb for the apk, and I had to up my minimum target to 9 for that to publish to play store.