Hey all,
I've been playing with my friend a lot recently and he has an issue where his Demigod freezes when someone connects to a game he is in. If hes not the host, he times out.
But if he is the host, everyone in the game sometimes gets "Connection to Host has Timed Out." with a "Give up" option. The dialog never goes away, but you normally are reconnected (you can check by asking someone to say something). If you are, the game can launch just fine.
The only issue is: If you didnt pick your DG and click ready, you cant click ready with the dialog up.
So my tip is: If you join a game, pick your DG and click ready. And don't click give up unless no one can type to you! 
(I understand this might not help everyone, but hopefully it helps get a few more games going)