Starting with the basics. Backups do not take locks, so the timeouts can't be from there.
Before looking for a solution, I'd suggest identify the problem. Why do queries time out? It won't be due to locks, so what is making them take longer? What wait types do you see during a backup and in at what % of overall? What wait types do you see normally (when backups aren't running) and at what % overall?
With that info, you should be able to start targeting the specifics of the problem and planning ways to mitigate those specifics.
Gail Shaw
Microsoft Certified Master: SQL Server, MVP, M.Sc (Comp Sci)
SQL In The Wild: Discussions on DB performance with occasional diversions into recoverability