#1) When I used to use a 327, our manual listed the numbers(or most of them) that you'd see with a timeout error. These are basically inputs. If the control doesn't see the input in the allotted time, it throws the error. The only way around it, is to fix the problem. This could be switches, solenoids, sensors.....
2) My guess would be RAM. But, that's just a guess. But, you're dealing with what's probably a 20 year old PC there.
It's been almost 9 years since I've used a Masterwood, and unfortunately, I don't recall what any of the numbers are referring to.