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Connect timeouts are implemented by waiting on the new socket descriptor. When select() is used for this, it imposes an arbitrary limit on the number of connections that can be made, usually 1024-3. Using poll() removes this limit on the number of simultaneous TCP connections can be made using luasocket. The previous default implementation using select() is available by defining SOCKET_SELECT. Note that using socket.select() always uses select(), so it isn't possible to wait on an arbitrary number of connections at once.
This is the LuaSocket 2.0.1. It has been tested on WinXP, Mac OS X, and Linux. Please use the Lua mailing list to report any bugs (or "features") you encounter. Have fun, Diego Nehab.