Location accuracy depends mostly on the location provider used:
If it's accuracy you are looking for, then GPS is your only option.
I've read a very informative article about it here.
As for the GPS timeout - 60 seconds should be sufficient, and in most cases even too much. I think 30 seconds is OK and sometimes even less than 5 sec...
if you only need a single location, I'd suggest that in your onLocationChanged
method, once you receive an update you'll unregister the listener and avoid unnecessary usage of the GPS.