I am trying to deploy a website that I have built in mvc3 on an server that runs iis7. I was able to get it running through the iis7 locally on my laptop, but when I try to
Instead of zipping your app, it will be better if you can publish it (in VS, right click on your project and publish) and after deploy it to your website (you have several options).
After, for IIS, it looks like a problem with Authentication. Try to allow Anonymous authentication. On IIS manager, go to your website, click on the Authentication module and enabled "Anonymous Authentication".
Let's see what happen after that even if the "time out" problem is strange .... Just to be sure, by default it is disabled to browse the content of a website and you will have a 403 error if you tried to do it.
Where did you put your app? Sometimes it can be problematic (for access configuration) to put it in specific folders like Programs files, etc etc. Try to install it at the root such as C:\Websites\MyApp just to test without user permission problems.