The error you get is the same as a time-out, but its instantaneous, as if MySQL under e-smith is ignoring the time-out setting.
I wonder if this is on purpose -- as in the e-smith team didn't want these things used as SQL servers? (I found a thread somewhere to that effect). If so, just post that fact to this thread so I can wipe e-smith off one of my servers (reluctantly) and get on with life...