Got this error after adding an attribute to a dimension.
Looking closely at the dimension and then straight in the SQL server found out that it had two values possible for no value:
'NULL' and '' (empty string).
Solution: making sure all the "unknown" were the same (I choose and empty string) fixed the issue and the dimension was processed successfully.
Update 22/11/2013
A different solution: wasn't a time out, it was the "warning" at the end of the dimension processing error message, and the details are below:
http://www.sqlservercentral.com/blogs/dknight/2009/03/02/cube-processing-error-hy008/
But in SQL server, the 0 is traited like empty string, for exemple, select if(0='',1,0), the result is 1. If u replace the empty string by somevalue else, it will replace all the 0 that shouldn't be replaced...
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