As you may know, I occasionally copy information here which I feel needs better exposure on the web. This is just such a post.
The operation failed because:
Failed to configure the service NETLOGON as requested
"The wait operation timed out"
This is a particularly useless message because the actual problem has nothing to do with netlogon.
I corrected this problem by modifying the TCP/IP settings to point DNS at the remaining domain controller (e.g. remove 127.0.0.1 or any other IP which points to the machine being demoted).