I came across this several times while onsite the other day and we have used MSMQ
extensively.

Fortunately there is a FIX from
MS available (yay!!)
If you have the problem, get it!

FIX: Error message when you try to use the SC tool to stop the service for the
BizTalk host instance in BizTalk Server 2006: “The service did not respond to the
start or control request in a timely fashion”

Enjoy