A backslash is the '\' character. You escape it with '\\'. It's only of relevance on Windows. Here's an example of escaping backslashes.
ooo.exe=C:\\Program Files\\OpenOffice.org 3\\program\\soffice.exe
Anyway, sounds like studio is timing out when it starts up. If you remove $TOMCAT_HOME/webapps/studio and $TOMCAT_HOME/webapps/studio.war, does it start up faster?
If so, there must be some configuration setting in studio that is making it time out. Perhaps the endpoint configuration?
We have found studio to be problematic on production servers, especially when you change the password of the admin user.