Themes Unexpected HTTP Error occured during the API request

Hi,

Just installed 3.0 – a clean install on a new domain. When I went to Search for themes (as well as Featured and Newest) I get the following error

An Unexpected HTTP Error occured during the API request.

Upload works fine and Recently Updated says No themes found

Looking around in the forums:
Searching for and installing plugins works fine
I do not have any plugins activated so I know one of them is not the culprit

Others suggested increasing the timeout in the http.php file, and while I could find that line in 2.9.2 WP version it is not in the http.php file for 3.0

Any bright ideas to fix this?

Thank you for your time